FxWirePro: Copper might face sharp selloff if resistance around $3.2 not cleared

Higher demand and the announcement from China that it might ban imports of copper scrap by the end of next year has pushed the price of copper to the highest level since September 2014 around $3.18 per pound after which profit bookings pushed the price sharply lower to $2.9 per pound.

Though the copper price has risen for third consecutive week (including current) after a support base around $2.9 per pound and is currently trading at $3.04 per pound, or calculations show that the price might take a sharp dip and reach as low as $2.5 per pound area if bulls fail to clear the previous peak around $3.18 per pound.