Copper prices were testing support levels at $8,200 per tonne in pre-market trading on the London Metal Exchange on Friday May 4, with momentum skewed to the downside ahead of key US jobs data due out later in the day.
Three-month copper prices were trading at $8,215 per tonne at 10:33 BST, having earlier hit an intraday low of $8,195 per tonne after a sharp move lower at the start of the European session.
“Copper has so far retraced about 50% of the rally from the April low to last Friday’s recent high,” ring-dealing member Marex Spectron told clients in a note.
“If this pattern is going to resolve to the upside, prices [will need to] hold this $8,164-8,200 support area before moving higher again, whereas a decisive push through this support area would likely lead to another test of the $7,885 area,” Marex Spectron said.
“A second weekly close above $8,400 would increase the bullish odds,” it added.
Copper prices have inched lower throughout the week in a thinly traded market, with positions being trimmed ahead of non-farm payrolls and unemployment data due out in the USA later on Friday.
“My feeling is that the numbers won’t be that good, and the market could react one of two ways: the dollar might slide initially because the numbers are disappointing, but then it could rally when everyone starts running for cover,” a category I broker told Metal Bulletin.
Copper stocks in LME-listed locations stood at 230,625 tonnes, down 4,575 tonnes.
Three-month tin traded at $21,725 per tonne at 10:21 BST, down from an opening price of $22,000 per tonne.
The soldering metal traded no higher than its opening level and recorded an intraday low of $21,675 per tonne.
Tin stocks in LME-listed locations stood at 14,545 tonnes, up 35 tonnes.
Nickel was the only base metal to have made significant ground on its opening price by 10:29 BST, when it traded at $17,495 per tonne, up from $17,365 at the start of the day.
Nickel stocks in LME-listed warehouses were 104,280 tonnes, up 516 tonnes.