The modest recovery extended into New York trading hours, helping give the key December COMEX contract a mild 0.30-cent lift by early close on Monday to $3.2830 per lb. With a weaker macro picture dominating sentiment, investors were becoming more reliant on technicals, where budding signs of chart support developed on Monday.
The front-month COMEX contract topped its 200-day moving average target on the weekly charts, CitiFX analysts pointed out Monday in a note to clients. Renewed downside pressure could push prices down to $2.93 per lb, which marks a 50-percent retracement of the rally from the late 2008 low, and then the June 2010 low at $2.72, analysts said.
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