COMEX copper futures shot up to a new contract high just after the open on Wednesday, then quickly backed off as speculators sold into the rally, traders said, "We saw a decent run to the upside, but it was short-lived. A lot of profit-taking came in on the rally. That's what stunted it," said one COMEX broker.
"Everybody is holding back right now, because there was a lot of profit taking at the highs, a lot of longs liquidated their positions. Mostly from the commission houses and banks. All speculative guys on the sell side, short-term sellers," a floor broker said.
The benchmark March copper contract on the COMEX division of the New York Mercantile Exchange steadied around $1.4490 a lb, up 0.65 cent. The range led to a contract high at $1.4560 from an early low of $1.4375.
On the three-month continuation chart, copper surged to a high dating back to October 12 at $1.4670 a lb.
Spot December rose 1.60 cents to a new contract high of $1.52. A few other nearby contracts also hit new life-of-contract highs and were up 0.45 to 2.00 cents.
COMEX estimated copper volume reached 5,000 lots by 1000 am EST on Wednesday.
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