Why copper fell 1.5% last week
In the week ended March 12, 2016, LME (London Metal Exchange) 3M copper fell 1.1% and ended the week at $4,970 per metric ton. It was the first decline in the past four trading weeks. Copper consolidated in a narrow range of $5,035 per metric ton and $4,970 per metric ton.
In the first week of March, copper closed above the price level of $5,000 per metric ton the first time since November 2015. The $5,000 per metric ton price level is the nearest prominent resistance level for copper in LME. Copper in Comex (Commodity Exchange) fell 1.5% last week. Major copper producers Freeport-McMoRan (FCX) and Glencore (GLNCY) fell 2.0% and 7.4%, respectively, last week.
How did aluminum do last week?
After gaining for three consecutive trading weeks, LME aluminum failed to carry the same positive momentum and fell in the week ended March 12, 2016. LME 3M aluminum fell 1.6% and ended the week at $1,561.50 per metric ton. Even though aluminum started last week with a profit, it declined and tested the support level of $1,550 per metric ton. The price levels of $1,600 per metric ton and $1,550 per metric ton are the nearest resistance and support levels for aluminum. Alcoa (AA), one of the largest aluminum producers, fell 0.52%.
Nickel, the biggest loser last week
Similar to copper and aluminum, LME nickel also declined to lower price levels and stood as the biggest loser in base metals last week. It fell 5.5% and ended the week at $8,830 per metric ton. The price levels of $9,000 and $8,500 per metric ton are the nearest resistance and support levels for nickel in the LME.
LME zinc declined in three of the five trading days last week. It ended the week at $1,802.50 per metric ton with a loss of 2.9%. Lead and tin in LME fell 0.75% and 1.9%, respectively, last week.
In the next article, we’ll look at the price action of base metal miners last week.