Morning Futures Roundup

PBoC Obliges Traders With Massive Stimulus Injection

    Fundamentals
Copper futures have followed precious metals and energies lower in recent sessions, driven by economic fears. Some Copper traders are hoping that the decline in Chinese corporate earnings will prompt the government to take more aggressive action. In addition to further stimulus, the Copper market may find support from Chinese infrastructure spending. The economic chaos in Europe, which has led to violence over austerity measures, may limit the upside of the Copper market.

   Technical Notes
Turning to the chart, we see the December Copper contract failing to break through the 3.85 level, and prices have subsequently pulled back. Yesterday's low is near the 20-day moving average. It is important that prices remain above the average or they risk losing momentum.

Prior to pulling back, the RSI had reached the high 80's, which can be seen as overbought and likely contributed to the pullback. The RSI is now back in neutral territory, suggesting some buyers may once again step in. In addition to 3.85, the 3.925 area can be seen as resistance. On the downside, support may be found at 3.60.

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About Mike Zarembski

Born in the grain pits of the Mid-America Commodity Exchange (MidAm) in the early 1990s, Mike's futures career soon shifted to the offices of TD Waterhouse in 1999, followed by Xpresstrade in 2002 and eventually optionsXpress in 2007.