London Metal Exchange (LME) copper prices are likely to trend lower later on Friday, although they will try to maintain a toehold above the key $2,100 a tonne level, traders said.
"It's trying to maintain itself at $2,100. I think it will try to break that level," a dealer for a metal trading house said. The ability of the red metal, though, to stay above $2,100 does not look convincing, the dealer said.
Another trader said copper was looking weak, but added that it "will not immediately go to $2,050."
The metal looks well-supported at $2,080 and seems to bounce back whenever it falls to that level, dealers said. "It should drift down slowly," a dealer said. Any attempt to challenge the upside is vulnerable to profit-taking, he added. Three-month copper was seen by one metal house at 0230 GMT at around $2,096/101 a tonne against the late indication on the LME of $2,097/100.
Brokers Rudolf Wolff said in their daily report that the close on the lows seems to suggest further selling pressure. "Should this emerge and copper break through $2,080, then next levels of support are placed at $2,052 and $2020," it said.
LME brokers Brandeis said in its report the red metal closed poorly with prices ending below the 30-day moving average.
