 Hello, welcome to this week's CMC market commodity snapshot. We're going to be looking at copper now There's been some weak economic data from China this week So that slows down the demand potentially for copper, but that follows some Monetary stimulus where China cut the reserve ratio, so that puts copper in a bit of a kind of conundrum There is a potential bottoming pattern, so we want to talk more and see whether that can follow through so as mentioned this week we've seen Chinese consumer and producer inflation dropping showing a general kind of weak demand in the Chinese economy with seen Imports drop to multi-year lows as well as a fall in exports. So China's economy is faltering a bit here and That is the reason that we've seen the Chinese central bank the people's Bank of China Cut the reserve ratio from 20% just to 19 and a half percent So that just means that banks need to hold less on reserve at the people's Bank of China So that enables them to lend out a bit more to the wider economy, but not much So the question really is going forward. Will the people's Bank of China cut more? Data at the moment from China suggests they might need to so as the data keeps weakening Fundamentally, there's going to be less and less demand from the Chinese economy And that's that's negative for copper and Copper prices have really fallen off a cliff recently. They've started to bottom out From this on the back of this this monetary policy But my feeling is that perhaps it might not be enough in itself So there are some key chart levels to have a look at here. So let's pull up the chart right now So this is the daily candlestick chart for copper and as you can see we saw a sharp spike In copper at that 245 level and we've really bounded back Came back down. We've tried to push through it a few times and failed and we're coming up higher now and Really that this sort of 266 is the sort of barrier to a potential double bottom pattern In copper and you can see in the RSI Just above 50 has been a resistance for quite a long time And so a move above 50 would indicate that perhaps we're moving out of this downtrending environment Not necessarily right into a raging uptrend, but at least towards more of a sideways market But if we see a breakthrough that 266 that could be to the catalyst to higher prices perhaps up as far as 295 that was the I believe 50% retracement from the longer term uptrend in in copper So that's it for this week CMC markets commodity snapshot. We were looking at copper, of course Now it doesn't trade in isolation. We've got to watch what happens with the US dollar That's been strengthening recently because of the strong employment numbers in the US Also oil prices have been dropping heavily If we see new loads and oil that does pose a risk to copper But should we see a break above that 266 we could see further appreciation in copper And I have written a full report on copper. You can see that at the link below So feel free to read some more on it