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Thursday, October 21, 2021

MCX Copper likely to move in a range of 451.8-459.2

Technically MCX Copper market is getting support at 453.6 and below same could see a test of 451.8 level, And resistance is now likely to be seen at 457.3, a move above could see prices testing 459.2.

Copper on MCX settled down 0.58% at 455.35 traded in the range while prices slipped from seven-month highs as the dollar firmed and investors cashed in gains from a rally in the previous session fuelled by falling inventories.

The dollar found strength in minutes from a US Federal Reserve meeting that raised expectations for a possible US interest rate hike this year.

Support also seen after Miner Glencore lowered its 2019 copper output forecast to 1.5 million tonnes from 1.54 million due to production cuts at its Mutanda mine in the Democratic Republic of Congo.

Meanwhile sentiments remain supportive as Stocks of copper in LME warehouses stand at 137,700 tonnes, close to 10-year lows of 122,500 tonnes hit in early December last year.

Traders are now waiting for fresh clues from the US and China have started to outline commitments in principle on the stickiest issues in their trade dispute, the most significant progress yet toward ending a seven-month trade war, sources said.

Signs of progress in trade talks usually boost metals and equities, but markets had been brewing on that theme for too long and most of the positive news has been priced in already.

Intense rains at the start of this month in Chile, the world’s top copper miner, likely hurt productivity at state-owned miner Codelco’s Chuquicamata and Radomiro Tomic mines, the country’s mining minister said.

Now a day ahead economic data slated for release today include Germany’s fourth-quarter GDP growth and February Ifo business climate index, the eurozone’s January CPI and US weekly oil rig count report from Baker Hughes.

Trading Ideas:
–Copper trading range for the day is 451.8-459.2.
–Copper prices eased as the dollar firmed after the Federal Reserve revived expectations for a possible U.S. rate hike this year.
–Intense rains at the start of this month in Chile, likely hurt productivity at state-owned miner Codelco’s Chuquicamata and Radomiro Tomic mines.
–Stocks of copper in London Metal Exchange warehouses stand at 139,500 tonnes, close to 10-year lows of 122,500 tonnes hit in early December last year.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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