(15/04) Nonetheless, the price of copper stayed within recent trading bounds. "So I am optimistic about the price in the short term," Yin told the Glo

April 15, 2011

Copper prices fell for the fourth consecutive day on the LME on Thursday morning as traders worried that escalating levels of inflation will trigger a tightening of monetary policy in Europe and China.

Technical levels came into the spotlight for several base metals on Thursday, particularly copper and nickel, which are now testing their all-important 100-day moving averages.

"Failure to remain above the 100 DMA, which we define as two consecutive bearish full-bodied closes, would be an important medium-term bearish signal," FastMarkets analyst Jono Remington Hobbs said.

“We would consider a short-term negative position on a close below $9,400 in a full body negative close, citing $9,263-$9,166 as our initial downside targets,” he added.

China's annual inflation accelerated to 5.3-5.4 percent in March, Reuters reported. The data surpassed market expectations for a 5.2-percent rise in the price of goods and services, fuelling worries that Beijing will raise interest rates yet again.

China’s inspection and crackdown on its banks and their lending processes may be of greater concern to markets.
Copper prices fell for the fourth consecutive day on the LME on Thursday morning as traders worried that escalating levels of inflation will trigger a tightening of monetary policy in Europe and China.

Technical levels came into the spotlight for several base metals on Thursday, particularly copper and nickel, which are now testing their all-important 100-day moving averages.

"Failure to remain above the 100 DMA, which we define as two consecutive bearish full-bodied closes, would be an important medium-term bearish signal," FastMarkets analyst Jono Remington Hobbs said.

“We would consider a short-term negative position on a close below $9,400 in a full body negative close, citing $9,263-$9,166 as our initial downside targets,” he added.

China's annual inflation accelerated to 5.3-5.4 percent in March, Reuters reported. The data surpassed market expectations for a 5.2-percent rise in the price of goods and services, fuelling worries that Beijing will raise interest rates yet again.

China’s inspection and crackdown on its banks and their lending processes may be of greater concern to markets, Fairfax said.