Copper Retreats From Two-month Highs, Time To Buy The Dips
Copper has fallen for the first time on Wednesday following a seven-day winning streak. The metal hit two-month highs on Tuesday as it was given fresh support from Chinese economic data which indicated robust demand for industrial metals.
Today’s fall is believed to be a correction after hefty gains as investors took profit. Manufacturing activities in China, the world’s biggest consumer of copper, were reported to expand at the fastest pace in more than two years in October. According to figures released on Tuesday, the PMI stood at 51.2 in October, much stronger than September and the highest reading since July 2014.
An expansion in Chinese manufacturing sector is expected to keep fueling demand for the copper.
Buy Stop at 2.2110, Take profit at 2.2300, Stop loss at 2.2000