18 C
New York
Tuesday, October 26, 2021

MCX Copper under fresh selling; Support seen at 701.2

Technically Copper market is under fresh selling as market has witnessed gain in open interest by 1.43% to settled at 4053 while prices down 3.25 rupees.

Now MCX Copper is getting support at 701.2 and below same could see a test of 692 levels, and resistance is now likely to be seen at 719.5, a move above could see prices testing 728.6.

Copper yesterday settled down by 0.46% at 710.2 on worries that the troubled Chinese property sector will further curb Chinese economic growth and metals demand.Volatility rose due to the LME options expiry on Wednesday and thin volumes since China is on holiday from Oct. 1-7.

Construction is a major driver of copper demand and other Chinese property companies have seen their bonds battered by uncertainty surrounding debt troubles at China Evergrande.LME on-warrant copper stocks have continued to slide to 90,725 tonnes, data showed, bringing the total losses over the past week to 27%.

German construction workers said they were likely to go on strike for higher wages and other payments, increasing pressure on employers to finally meet a range of demands including more compensation for long commutes to building sites.

U.S. private payrolls increased more than expected in September as COVID-19 infections started subsiding, boosting hiring at restaurants and other high-contact businesses.

Private payrolls increased by 568,000 jobs last month, the ADP National Employment Report showed. Data for August was revised lower to show 340,000 jobs added instead of the initially reported 374,000.

Trading Ideas:
–Copper trading range for the day is 692-728.6.
–Copper prices slid on worries that the troubled Chinese property sector will further curb Chinese economic growth and metals demand.
–LME on-warrant copper stocks have continued to slide to 90,725 tonnes, data showed.
–Volatility rose due to the LME options expiry on Wednesday and thin volumes since China is on holiday from Oct. 1-7.

Courtesy: Kedia Commodities

Source: Comodity Online

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