Copper bounces-back from 5-1/2 year lows on impressive China data

FXStreet (Mumbai) - Copper futures on Comex rebounded today, having dropped to fresh five and a half year lows yesterday amid a massive commodities sell-off on global growth concerns.

The red metal trades now at USD 2.544/ pound, up 1.57% on the day, having posted fresh intraday high at 2.577 earlier in the day. Copper prices rebounded today as traders viewed the sell-off as excessive. Moreover, upbeat Chinese credit growth numbers also supported the recovery in the red metal prices. Aggregate financing was 1.69 trillion Yuan ( USD 273 billion), the People’s Bank of China announced, beating market estimates of 1.2 trillion Yuan.

Copper prices collapsed yesterday amid increased speculations over slowing global growth, dulling the metal’s demand for industrial use. Moreover, falling oil prices also added to the losses in the copper prices.

Copper Technical Levels

Copper prices have an immediate resistance located at 2.677 (5-DMA), above which gains could be extended to 2.72 levels. Meanwhile, support is seen at 2.32 levels, below which it can extend losses to 2.135 levels.