TECHNICALS FOR DECEMBER 15

MCX FEBRUARY COPPER

SHORT TERM : BEARISH

LONG TERM : BEARISH

SUPPORTS : 158, 156, 153

RESISTANCES : 163, 165.40, 168

WAIT FOR CONFIRMATION

The base metal complex continue to be affected by poor

economic data and fear of a prolonged recession in most

economies.

Rising inventory , contraction in liquidity and poor demand

characterise the base metal comnplex.

The failure of the US auto bail out package may exacerabate

the situation. Copper cash prices could breach the $ 3000

a tonne and rule below that level in the new year given

extremely poor demand conditions and bouts of selling.

Analyst tracing copper point out that lower lows are

likely into next year and a move below $ 3000 would

indicate a test of $ 2630.

The range for copper would be between $ 3000 and $ 3375

and a break through either of these levels would

likely trigger another $ 100 to $ 150 of follow through.