MCX Copper under long liquidation; Resistance seen at 448

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NCDEX Chana under long liquidation; Resistance seen at 4338

Technically Copper market is under long liquidation as market has witnessed drop in open interest by 0.34% to settled at 3794 while prices down 2.3 rupees.

Now MCX Copper is getting support at 444.5 and below same could see a of 443 level, and resistance is now likely to be seen at 448, a move above could see prices testing 450.

Copper on MCX settled down 0.51% at 446 as the US- trade war and the global demand slowdown continued to weigh on prices. produced 801,000 mt of refined copper in , up 4.8% from a year ago, after a year-over-year increase of 11.8% in June, showed data from the National Bureau of Statistics.

This brought output in the first seven months of the year to 5.35 million mt, up 5.5% from the same period last year.China?s output of copper materials grew 2.2% from a year ago and stood at 1.69 million mt in July, slowing from a rise of 13.4% in June. Production of copper materials in January-July posted 11.29 million mt, up 8.9% year on year.

The US Treasury yield curve still hovered around the inversion point, while the yield on the 30-year Treasury bond fell below 2% for the first time ever. The US Commerce Department says retail sales rose a healthy 0.7% last month, after a 0.3% gain in June. Online retailers, grocery stores, clothing retailers and electronics and appliance stores all reported strong gains.

Meanwhile, China vowed to counter the latest U.S. tariffs but called on the United States to meet halfway on a potential trade deal.Copper stocks across Shanghai bonded areas this week continued their slide that began since May, data showed. Stocks shrank 11,000 mt from a week ago and 227,500 mt from  26, to stand at 360,500 mt as of Friday August 16.

Trading Ideas:
–Copper trading range for the day is 443-450.
–Copper prices dropped as the US-China trade war and the global demand slowdown continued to weigh on prices.
–China produced 801,000 mt of refined copper in July, up 4.8% from a year ago, after a year-over-year increase of 11.8% in June.
–Copper stocks across Shanghai bonded areas this week continued their slide that began since May, data showed.

Courtesy: Kedia Commodities

Source: Commodityonline.com