Copper likely to trade in a range between 426.3-443.5

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Now technically market is getting support at 431.5 and below same could see a test of 426.3 and resistance is now likely to be seen at 440.1, a move above could see prices testing 443.5. 

Copper on MCX settled up 1.38% at 436.70 gained on short covering tracking firmness from LME copper prices which ended up 1.4 percent at $6,136 a tonne after 12,500 tonnes of cancellations cut on-warrant stocks in LME-warehouses to 104,950 tonnes, reversing recent gains and pushing levels towards October’s 13-year low of 56,650 tonnes.

Meanwhile China set a new record last year in terms of how much copper it sucked in from the rest of the world. Imports of refined metal reached 3.75 million tonnes, up 16 percent from 2017 and eclipsing the previous high of 3.68 million tonnes registered in 2015.

The strength of China’s import appetite is surprising given the country’s own refined copper production surged by 8 percent to just over 9.0 million tonnes in 2018. The US dollar fell to a low not seen since January 11 after the held interest rates steady as expected, and sounded caution on the economy and future interest rate increases.

The Fed said it would be patient in lifting borrowing costs further this year as it pointed to rising uncertainty about the US outlook. From Data point payrolls processor reported that the US private sector added 213,000 jobs in January.

Now in the Day ahead Economic data slated include China’s official manufacturing PMI for January, Germany’s retail sales for December and unemployment rate for January, the eurozone’s growth for the fourth quarter and unemployment rate for December, the US weekly jobless claims and the Chicago PMI for January.

Trading Ideas:
–Copper trading range for the day is 426.3-443.5.
–Copper prices rallied as support seen after 12,500 tonnes of cancellations cut on-warrant stocks in LME-warehouses to 104,950 tonnes.
–The Fed said it would be patient in lifting borrowing costs further this year as it pointed to rising uncertainty about the US economic outlook.
–China’s imports of scrap copper from the rose in December from the previous month, customs data showed, snapping six straight months of declines.

Courtesy: Kedia Commodities

Source: Commodityonline.com