OptionsXpress: Copper Traders On Edge; Sell-Off Could Mean Value Buying

Copper traders have been on edge lately, although some bargain hunting may occur on the recent sell-off, says optionsXpress. There are concerns about Western economies and whether recent Chinese imports of the red metal are simply a shift in where inventories are stored around the world, analysts say. Technically, Comex December copper could face “immense selling pressure” if it fails to hold $3 per pound, optionsXpress says. “The recent sell-off could trigger some value buying, as some traders may view the recent declines in prices as excessive,” optionsXpress says. “Many traders may also point to the fact that copper imports by China increased last month. There is question as to whether the imports were simply a shift in inventories between the LME (London Metal Exchange) and Shanghai. Ideally, traders would like to see more consistent buying by the industrial giant.”