Copper to move higher to test resistance areas

Copper rose sharply after reaching crucial support area as Chinese concern eased somewhat as stock index rose 5.8% today, since the government took whatever it takes approach to cut short the fall.

However as of now, it is too early to call a bottom and reversal in copper as fundamental remains almost unchanged.

Chinese economic growth is slowing down, which means lower demand from copper and supply to remains ample as Countries like Chile will like to earn as much dollar as possible with increase in shipment.

However, technically speaking copper might move higher from here and test resistance area. Strategically copper remains sell. Short position can be built at key resistance.

Copper is currently trading at $2.65 per pound and $2.7 per pound.

Copper might trade between $2.7-2.75 before resuming downtrend.