Copper is moving higher as we have overcome the inconsiderable obstacle of the US debt ceiling with a temporary fix in place but no firm solution in place or within sight, we are definitely not out of the woods yet. The president Barack Obama has said that he will try to avert such a situation when the circus does return to the capital in January, but the hopes for such prospect are extremely bleak and this could keep the consumer to be very cautious as we head towards the end of this year.
As the shutdown has cost nearly $24billion for the economy, the challenges which Fed will face, will not only be limited to the unemployment rate, repairing the reputation & economy, but also perhaps preparing to accommodate for the debt ceiling circus which will return in February. Therefore, loose monetary policy could possibly be in place for some time perhaps at-least Janet Yellen takes over which is pushing copper higher.
Focus: The immediate support for December future is at $324 and a break of this could easily open the floor towards the $320 level. On the upside, the major resistance could be at the $336 level could followed by $340.
As for the LME the upside is capped by the resistance of $7405, and a break of this would further open the floor for the next target of 7475. The immediate support is at 7102.