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Monday, July 4, 2022

Copper market under fresh selling; Support seen at 408.8

Natural Gas likely to trade between 185-194.8 levels

MCX Crude Oil may trade in a range between a 4538-4844

Silver market under fresh selling; Support seen at 37978

MCX Cotton under long liquidation

MCX Cardamom under long liquidation; Support seen at 1114.4

Technically Copper market is under fresh selling as market has witnessed gain in open interest by 3.54% to settled at 26203 while prices down 6.45 rupees.

Now Copper is getting support at 408.8 and below same could see a test of 403.3 levels and resistance is now likely to be seen at 420.5, a move above could see prices testing 426.7.

Copper on MCX settled down 1.53% at 414.20 collapses to one-year low, weighed by renewed trade jitters.  Copper prices dropped below $6000 mark as worries over slower growth of China’s economy and uncertainties over trade war continued to depress market sentiment.

A sell-off that has hammered the price of industrial metals continued yesterday as fears over slowing global growth and the trade spat between the US and China rattled commodity markets. Lead, nickel and zinc tumbled as much as 5 per cent while copper crashed through $6,000 a tonne.

While the operating rate across Chinese manufacturers of copper products is expected to dip in July amid a seasonal lull, downstream consumption showed stable performance. Trading in the physical market was brisk this week as traders were keen to purchase while sellers held their offers firm in a closed import arbitrage window. Last night the US dollar index fell from one year’s high and closed at 95.09, slightly up from Wednesday.

From data points the US initial claims for state unemployment benefits dropped 8,000 to a seasonally adjusted 207,000 for the week ended July 14, the lowest reading since early December 1969.

This compared to an expected rise to 220,000, suggesting that the labour market continues to strengthen. The four-week moving average of initial claims, considered a better measure of labour market trends as it irons out week-to-week volatility, fell 2,750 to 220,500 last week.

Trading Ideas:
–Copper trading range for the day is 403.3-426.7.
–Copper dropped as worries over slower growth of China’s economy and uncertainties over trade war continued to depress market sentiment.
–The People’s Bank of China plans to introduce incentives that will boost the liquidity of commercial banks, helping them to expand lending.
–China’s June refined copper output rose by 11.7 pct year-on-year to 776,000 tonnes, the National Bureau of Statistics said.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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