Copper prices may fall another 13%

Bloomberg News came on July 12th, according to technology analysts of TradingCentralSA, London copper futures may fall for the next two months 13%, fell to the lowest level since 2010, due to the formation of death crossing mobile average.

Ludwig Garric, head of commodities research at the company, said that LME three-month copper may fall to $6,050 per ton. It accurately predicted the trend of high soybean prices last year.

"The 20-day, 50-day and 100-day moving averages are all falling, and the shorter-term moving average is lower than the longer-term moving average, indicating that the market outlook is down. Garric said in an e-mail. He said the price is also being suppressed by the upward trend line.

Garric said that the 50-day moving average has been below the 200-day moving average since April 11 and the 100-day moving average has been below the 200-day moving average since April 30, forming a bearish crossover technical signal.

The price of copper has fallen 12% this year. The market is concerned that as the world’s largest copper consumer, China’s economy, slows down, demand will weaken. At 12:46 Singapore time, LME three-month copper fell 0.3% to US$6,980 per ton.