We believe the industrial production data have taken more steam out of the base metals. Although, the data have surpassed the forecast, but what is really worrying is the GDP forecast of 7%, which the PBOC of china is trying to maintain and with industrial production only at 6.1%, the GDP target is not easily achievable. Therefore, this leaves very little options open for the PBOC beside to loosen up the monetary policy further.
The Copper price is trading below its downward trend line representing that the bears are in strong control of the price and the trend remains towards the downside. The nearest support remains at the 2.644 level and the resistance is at 2.855. However, the momentum indicators are confirming that the downward move is losing momentum behind it and therefore this could change the current trend or pause this to consolidate.