LME copper attacked the upside yesterday morning ring trading as the mood turned positive in the wake of inventory draws and a earthquake in Chile. Three months copper ended the morning kerb $23 higher at $2,134, and at the top end of a band of resistance after stops were hit on Comex and shorts were forced to cover.
A convincing breach of the October 1 peak of $2,136 would likely send prices up to the late September high of $2,180, traders said. Sentiment has changed.
Its held quite well above $2,100 and people have been more willing to buy the dips, a floor trader said. With prices above $2,130 I think you might see some pretty worried people, there are a lot of shorts out there, he added.
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A strong earthquake hit central and northern Chile late on Tuesday, but there was no immediate word of how copper mines in the region fared.
Fund and bank buying put some steam in the market during the pre-market, sending prices to a high of $2,129, but volume was relatively light.
In the first ring, prices dipped back to Tuesdays close of $2,111, but once it held, the bulls came back in and a flurry of buying was seen during kerb trading.