 Hello, welcome to this week's CMC Markets Commodity Snapshot with myself, Jasper Lawler. This week we're going to be focusing on copper. Now the price has just broken out to a three and a half month high, near four month high. And so we want to look at some of the reasons that this might be taking place and whether it's sustainable. We also want to have a look at the price chart because there is a bottom formation here which could indicate much higher prices. So we did hear news this week that China, one of the largest producers of copper in the world, is going about slashing millions of jobs in its state-owned enterprises. These are the companies that the government directly owns. Now some of that included the steel and coal industry, obviously not copper directly. But part of what's been an issue for commodities in general is that China has been flooding the world with these cheap, underpriced commodities from these government backed firms that don't necessarily have the same profit motivation that everyone else does. Now the fact that they're cutting jobs here is the country going some way to address the excess supply and the over capacity that these industries are being experiencing for a while. And the hope is that China cutting back jobs and reducing its over capacity of these commodities will see some of the private industries in the West do the same as they already have started to do. So it looks like supply could be starting to come out of some of these industries. And so that's why we've seen the price break out of what has been a three month consolidation pattern. So if we just have a look at this daily price chart for copper here, we can see that we've broken out above this 214 horizontal level. Now that was two previous peaks and it was also a downward sloping trend line that's been in place for about eight months. So yesterday we broke above both those two areas of resistance and it now does appear that we have broken through an inverse head and shoulders bottom pattern. Now if that pattern does hold to be true, the objective for that would actually be $235 per pound in copper. That would actually take us through a couple of quite major resistances on the way. One was from two previous lows around August and October of last year. They come in just above 220 per pound. There's also the 200 day moving average which currently sits just below $230 per pound. A couple of resistances along the way, but we have broken through a major resistance level here and suggest that some higher prices could be on the way. So that's it for this week's CMC Markets Commodity Snapshot. We're of course looking at copper, a lot of the emphasis being on China, its efforts to reduce capacity in some of these commodity markets. We've had some pretty weak data from China this week, services and manufacturing declining but that doesn't seem to have put off this rise in commodity prices which again adds to the strength of this breakout in the face of quite negative news. So let's look out for further news from China, see how that impacts the price and let's see if we can make anywhere close to this $235 per pound objective from this inverse head and shoulders pattern.