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Friday, March 24, 2023

MCX Copper likely to move in a range of 456.7-465.3

Technically Copper market is getting support at 458.7 and below same could see a test of 456.7 level, And resistance is now likely to be seen at 463, a move above could see prices testing 465.3.

Copper on MCX settled up 0.12% at 460.70 while prices traded in the range of 460-465 as a weak dollar and dwindling stocks lent support, with investors also still cheering signs of progress in U.S.-China trade talks.

The dollar, meanwhile, sank to a three-week low after Federal Reserve Chairman Jerome Powell suggested he was unlikely to raise interest rates anytime soon. Support seen after the concerns that copper mine supply tight, disruptions escalating and demand set to hold up, while market is forecasting a small deficit this year and an average third-quarter price of $6,750 a tonne.

Meanwhile the US dollar slid to a three-week low on Tuesday, as Federal Reserve Chairman Jerome Powell repeated in prepared testimony released in advance of a hearing before the US Senate Banking Committee that the US central bank would remain “patient” in deciding on further interest rate hikes.

The greenback also benefited from a jump in the US consumer confidence index for February. The Conference Board, a business research group, said on Tuesday that its consumer confidence index rose to 131.4 this month from a revised 121.7 reading in January.

The rebound in consumer confidence was likely helped by a rally in the stock market and an end to partial shutdown of the federal government.

Now day ahead economic data slated for release today include the Eurozone’s economic climate index and consumer confidence index for February, the US’ wholesale inventories, factory orders and durable goods orders for December, pending home sales for January. Fed Chairman Jerome Powell will continue his two-day semiannual testimony before Congress today.

Trading Ideas:
–Copper trading range for the day is 456.7-465.3.
–Copper gained driven by signs of dwindling stocks and progress in U.S.-China trade talks 
–President Trump said there was “a very good chance” the United States would strike a deal with China to end their trade war.
–On-warrant LME copper inventories available to the market fell by 6,350 tonnes to 33,450 tonnes, the lowest level since August 2005.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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