Copper dips below 100-DMA, hits one-week low

Copper dipped below 100-DMA level of $2.59 to hit a one-week low of $2.5746 as investors fear increased supplies in the short-run from the world's biggest copper mine in Chile and another copper mine in Indonesia.

At the time of writing, Comex Copper was trading at $2.5845/pound. The metal has dropped for the last two trading sessions.

Freeport-McMoRan's Indonesian operation has resumed copper concentrate production at its Grasberg mine. The mine was closed for more than a month. Meanwhile, it is being reported that talks to resolve a strike at the World's biggest copper mine in Chile are set to resume.

Elsewhere, the data released showed Peru's copper production rose 24.8% in January from the same month a year earlier.

Copper Technical Levels

A break above $2.59 (100-DMA) above which the prices could test $2.6342 (Feb 23 low). On the other hand, a breakdown of support at $2.5746 (session low) would open up downside towards $2.5429 (Mar 9 low).