Copper Prices Hit 3 Month Low on Chinese Metals Fraud
- Fraudulent Metals Documents Reported at 10 Billion USD
- Price per pound falls 8%
- Copper prices hit 3 month low nearing support
The State Administration of Foreign Exchange (SAFE) participated in a joint press conference today to review China’s foreign exchange management policy reforms. During the pivotal Q&A portion, Deputy Director Wu Ruilin confirmed that upon inspection of several regional areas including the Qingdao Port 10 billion USD worth of documents were found to be falsified in an effort to reuse property.
As the world’s 7th busiest port, Qingdao's metals financing fraud has created macroeconomic disturbances. Copper prices have fallen from 3.293 per pound in July to today’s price of 3.019. This equates to an 8% loss in value over 3 months.
On the day Copper is trading near 3 month lows. From a technical perspective, there is a wave relationship where wave C equals wave A (which is common), red channel support, and previous horizontal support near 3.01 – 3.02.
Technically speaking, prices should bounce from this strong level of support. If prices do bounce, the next level of resistance is near 3.17. However, a break below will indicate just how weak prices could become. A break lower could eventually target the March 2014 low near 2.88.
Daily Copper Price Chart
Graph Created By Jeremy Wagner Using MarketScope2.0
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