Copper Rides Crude Tear as Bears Take a Rest in Metal Meltdown
- Technical indicators show industrial metals may be oversold
- Traders with bearish bets buying back metal to cover positions
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Copper and nickel led an industrial-metals rebound on speculation that the slump encouraged some traders to close out bearish bets and as oil prices surged.
The 14-day relative-strength indexes for each of the six main contracts on the London Metal Exchange were near or below the level of 30 that indicates to some traders that prices may be poised to rebound. Crude oil helped spark a rally in commodities as tensions in the Mideast rose after Turkey shot down a Russian warplane.