METALS-Weaker dollar pushes copper towards fifth day of gains

* LME/ShFE arb: http://bit.ly/2wZSAEz (Updates prices, recasts, adds comment)

LONDON, Nov 23 (Reuters) - Copper prices were set for a fifth day of gains on Thursday and most other industrial metals also rose, helped by a weaker dollar, although concerns over demand from top consumer China after a sharp fall in Chinese share prices limited gains.

Volumes were low, with Japanese markets closed for a national holiday and the United States celebrating Thanksgiving.

"Risk sentiment in markets has recovered a bit and we've seen the dollar fall back. But a looming concern would be China where we saw the stock market fall nearly 3 percent today. If that is giving a signal about the economy then metals will respond," Danske Bank analyst Jens Pedersen said.

COPPER: Benchmark copper on the London Metal Exchange was up 0.1 percent at $6,959 a tonne at 1522 GMT after touching $6,984, the highest since Nov. 7.

TECHNICALS: Copper looked ready to test resistance at $7,000 after breaking through a Fibonacci level of $6,945 a tonne, said Thomson Reuters technical analyst Wang Tao.

STOCKS: Copper inventories in LME-registered warehouses fell 7,200 tonnes to 226,275 tonnes. Stocks have fallen almost 30 percent since mid September, pointing to tighter supply and supporting prices. <MCUSTX-TOTAL>

CHINA ECONOMY: China's economy cooled in October, with industrial output, fixed-asset investment and retail sales missing expectations as the government extended a crackdown on debt risks and factory pollution. China is the world's biggest metals consumer and a key influence on prices.

CHINA STOCKS: Blue-chip stocks saw their worst one-day loss in nearly 18 months as investors reacted to government steps to reduce risks in the financial system.

DOLLAR: The dollar hit its weakest in than a month, making metals cheaper for holders of other currencies and supporting prices.

GERMANY: Exports and rising business investment drove German economic growth in the third quarter, suggesting the upswing in Europe's largest economy would extend well into next year.

PERU STRIKE: Workers for the two largest unions at Southern Copper Corp in Peru started an indefinite strike, though the company said operations were unaffected.

PRICES: Aluminium was up 0.4 percent at $2,114.50 a tonne, nickel was 0.2 percent higher at $11,860, zinc had gained 0.2 percent to $3,234.50, lead was down 0.4 percent at $2,452.50 and tin was flat at $19,400.

(Additional reporting by Tom Daly; Editing by Mark Potter/Andrew Heavens/Alexander Smith)