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New York
Sunday, November 28, 2021

Copper market under short covering; Support seen at 417.1

MCX Aluminium may trade in a range between 143.8-145.8

Nickel market under fresh selling; Support seen at 929

Zinc market under short covering; Support seen at 177.1

MCX Natural Gas under long liquidation; Support seen at 200.8

MCX Crude Oil may trade between 4779-4861 levels

Technically Copper market is under short covering as market has witnessed drop in open interest by 1.56% to settled at 24258 while prices up 2.25 rupees.

Now MCX Copper is getting support at 417.1 and below same could see a test of 415.7 levels and resistance is now likely to be seen at 420.3, a move above could see prices testing 422.1.

Copper on MCX settled up 0.54% at 418.50 gained on short covering as a weaker US dollar and improved market sentiment are expected to continue to buoy copper prices in the short run. While 422 will act as strong resistance as the trade war between the United States and China clouded the demand-outlook for industrial metals. 

A surging Chinese yuan is likely to drive LME copper to outperform the contract yesterday. Three-month copper on the London Metal Exchange had dropped 0.6 percent to $6,066.50 a tonne by 0330 GMT, while the most-traded copper contract on the Shanghai Futures Exchange slid 0.4 percent to 48,540 yuan ($7,061.39) a tonne.

The U.S. Commerce Department said on Monday it had made a preliminary determination that imports of certain steel wheels from China were subsidized at rates ranging from 58.75 percent to 172.51 percent, and it would impose duties on the product.

China’s investment growth, already at record lows, may weaken even further in the future and authorities should step up fiscal and financial measures to give it a boost, the state planner said on Monday.

Meanwhile Beijing is urging more infrastructure spending as the economy faces both domestic and external risks, such as U.S. tariffs. But the benefits will take time to kick in, with market expecting the economy to get worse before it gets better.  

Trading Ideas:
–Copper trading range for the day is 415.7-422.1.
–Copper gains as the dollar came under pressure after United States and Mexico reached a bilateral trade deal.
–China’s investment growth, already at record lows, may weaken even further in future and authorities should step up fiscal and financial measures to give it a boost.
–Copper stocks across Shanghai bonded areas shrink 2,400 mt from a week ago to 477,900 mt as of now.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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