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Friday, March 24, 2023

MCX Copper likely to move in a range of 434.9-444.3

Technically Copper market is getting support at 437.1 and below same could see a test of 434.9 level, And resistance is now likely to be seen at 441.8, a move above could see prices testing 444.3.

Copper on MCX settled down 0.77% at 439.30 on concerns over U.S.-China trade dispute and slowing global economic growth, while copper dropped for a fourth straight session.

While fall was limited as compare with other metals as prices are widely expected to strengthen as inventories stay at relatively low levels and as downstream demand would pick up after the Chinese New Year holiday.

Copper inventories across SHFE-registered warehouses stood at 142,700 mt as of February 1, up 23,000 mt from January 25. A gain of 15,000 mt in Shanghai and a gain of 5,700 mt in Guangdong contributed to the increase in overall stocks.

Stocks across LME-registered warehouses shrank 750 mt from February 1 to stand at 149,200 mt as of February 8. Inventories before the CNY break stood much lower than last year, even as stocks expanded from the holiday impact.

In the physical market, trades were quiet today as most firms have yet to recover from the holiday and as the imminent expiration of the SHFE front-month contract drove sellers to offer high, which held back traders from making purchases.

China’s foreign exchange reserves rose to $3.0879 trillion at the end of January, data showed Monday. The amount increased by $15.2 billion, or 0.5%, from the level by the end of December 2018, according to data of the SAFE.

A day ahead Economic data slated for release today include US December JOLTS. On the central bank front, Fed Chairman Jerome Powell, Fed governor Michelle Bowman, BoE Governor Mark Carney and Bundesbank President Jens Weidmann will deliver speeches.

Trading Ideas:
–Copper trading range for the day is 434.9-444.3.
–Copper dropped as dollar rose as fresh worries over U.S.-Sino trade tensions and global growth pushed investors towards the safety of the greenback.
–Chilean state miner Codelco said it hoped to soon restart operations at its northern Chuquicamata copper mine after heavy rains forced its suspension.
–Market watchers will also be following progress in U.S. – China trade talks, with meetings between officials from the two sides due to start in Beijing.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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