Concerns over Chinese economy in wake of weaker than industrial production data has pushed copper to new six year low today. In CFD prices dropped to $2.196/pound, while LME quoted $ 4885/ ton.
While retail sales have improved to fourth consecutive time and grew to 11% y/y in October, it has not been much of a good news for industrial metals like Copper.
With today's drop, though copper has bounced back to trade at $2.21/pound, it has fallen to new low, breaking last three months' congestion.
However, there is a risk of bounce back is building up as the price is down for six consecutive days for first time since June. In past two years, copper has only once declined more than 6 days consecutively and that was back in January 2014, when price dropped for 9 consecutive days, declining roughly 18 cents per Pound.
In spite of any recent comeback, copper remains firmly in bearish trend and likely to drop towards $2/pound.
