An Insight Into Copper- Special Report By CapitalHeight

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) May 17, 2011 -- Introduction

Copper was the first mineral that man extracted from the earth and along with tin gave rise to the Bronze Age. As the ages and technology progressed the uses for copper increased. With the increased demand, exploration for the metal was extended throughout the world laying down the foundations for the industry as we know it today. Copper is the third largest consumed metal after steel and aluminum in the world. Copper is used as electrical conductor, construction material and as components in telecommunications and alloys. Copper is an excellent conductor of electricity, as such one of its main industrial usage is for the production of cable, wire and electrical products for both the electrical and building industries. The construction industry also accounts for copper's second largest usage in such areas as pipes for plumbing, heating and ventilating as well as building wire and sheet metal facings.
Factors affecting copper prices

The wide production base means there are numerous factors that can affect production and therefore prices. In North and South America, production is often affected by labor unrest, in parts of Asia and Africa production can be affected by political unrest; take for example the closures of the Bougainville mine in Papua New Guinea and the decimation of production in Zambia. In addition, weather is an important factor affecting supply, with floods and droughts either hitting the production process or the transport of raw materials. New production also takes years to commission as the scale of mining is large, it takes enormous financing, requires endless environmental permissions and needs extensive infrastructure as well. All these factors make it hard for the market to balance supply and demand.

Short Term Outlook:-

If we look at Copper weekly chart and simply apply a Fibonacci retracement of its recent uptrend starting from May 2010 to its peak of $464.10 in Feb 2011, we can see that Copper has corrected 38.2%. Further, the RSI is at 45.15 on weekly chart and is on over all downtrend taking resistance of trendline. Below 50 RSI indicates a bearishness of Copper in near future. Copper from here have a downside and it can correct to 50% that is at $368 where we meet our long standing support trendline which is drawn from the troughs of December 2008. In our short term outlook we expect Copper could correct further and may test the level of $368 - $370.

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http://www.capitalheight.com/specialreports/AN INSIGHT INTO COPPER.pdf

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