Copper prices see pressure toward technical support

LONDON (SHARECAST) - Copper prices are falling again today, with prices apparently trading close to support levels, from a technical analysis viewpoint.
Base metals prices shaved some gains towards the end of last week on the back of broader market weakness and due to a renewed rally in USD. Also pressuring prices, Chinese import statistics on Friday showed a 3% month on month drop in imports for the month of May, Morgan Stanley is pointing out this afternoon.
The bank’s analysts, however, expect trade data for June to show a turnaround, “as signs of Chinese re-stocking continue to build.”
Also of interest, Morgan Stanley calls attention to a Chinese “cash for clunker" type scheme which offered some support in the palladium complex, last Friday, whereas most precious metals saw weakness that day, likely due to profit taking and concerns over strength from the investment community in an environment of diminishing gains.
The unofficial cash price for copper is now falling 1.2%, to $8,895 per tonne in LME trading, according to Digital Look data.

Source: http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=4290663