Key points

• Chinese demand remains robust
• Industrial production remains resilience
• Technical analysis

China’s copper-intensive manufacturing sector has been expanding at a rapid pace in November, according to an official survey whose sub-index for construction picked up as China boosts infrastructure spending. The strong rebound in demand is being cemented by China’s ability to quickly shake-off the degrading effects of the Covid-19 pandemic. This is highlighted by China’s Industrial Production data which has accelerated to 7% growth against 6.9% for the month of October. Suggesting that China, economic recovery is gaining momentum as demand improves more broadly from the virus crisis.

Industrial production remains resilience across major economies from across the globe. Japan’s data indicated a slight improvement from the previous month’s reading of 3.9%, the actual stood at 4%. U.S. industrial activity remains slightly subdued, with a reading of 0.4% a meagre improvement. This is sufficient to prompt optimism taken into consideration the fact that a Covid-19 vaccine is just around the corner.

Copper; Daily Chart

Technically, the trend indicators are sharply pointing upwards highlighting the immense bullish momentum currently in the markets. The 60 Moving Average had been offering strong support as prices continue to rise in an ascending channel. The price has become overextended away from the major moving averages and the ascending channel. A price correction cannot be ruled out based on that that fact.

Trends

Moving Average	Simple	Exponential
60	3.2130 BUY	3.2690 BUY
100	3.1180 BUY	3.1410 BUY
200	2.8060 BUY	2.9610 BUY

Pivot Points (Daily)

Name	S3	S2	S1	Pivot	R1	R2	R3
Copper	3.5181	3.5398	3.5706	3.5923	3.6231	3.6448	3.6756
Silver	24.60	24.97	25.57	25.94	26.54	26.91	27.51
Platinum	1004.56	1019.83	1034.26	1049.53	1063.96	1079.23	1093.66
Palladium	2293.50	2311.50	2330.00	2348.00	2366.50	2384.50	2403.00

Pivot Points (Monthly)

Name	S3	S2	S1	Pivot	R1	R2	R3
Copper	2.6711	2.8513	3.1446	3.3248	3.6181	3.7983	4.0916
Silver	16.63	19.29	20.94	23.60	25.25	27.91	29.56
Platinum	736.76	788.13	880.16	931.53	1023.56	1074.93	1166.96
Palladium	1880.06	2038.03	2206.31	2364.28	2532.56	2690.53	2858.81