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Technically Copper market is under long liquidation as market has witnessed drop in open interest by 0.58% to settle at 11970 while prices down 4.5 rupees.
Now MCX Copper is getting support at 450.5 and below same could see a test of 448.3 levels and resistance is now likely to be seen at 455.6, a move above could see prices testing 458.5.
Copper on MCX settled down -0.98% at 452.55 as a trade war between the United States and the world’s top industrial metals consumer China weighed on the market.
Pressure seen as China’s factory-gate inflation cooled for a third straight month in September amid ebbing domestic demand, pointing to more pressure on the world’s second-biggest economy as it remains locked in an intensifying trade war with the United States.
Related Post
Growth in China’s factory sector in September stalled after 15 months of expansion, with export orders falling the most in more than two years, a private business survey showed.
Last night the US dollar index dropped to more than two-week lows on Tuesday while emerging market currencies outperformed, as rising stock markets reflected improving risk appetite. Both LME and SHFE base metals ended in mixed performance overnight.
SHFE nickel and lead sank close to 0.8%, copper and zinc dropped some 0.4% while aluminium rose some 0.7%. From data point from US side data showed US industrial production increased for a fourth straight month in September, boosted by gains in manufacturing and mining output, but momentum slowed sharply in the third quarter.
Now day ahead some data to monitor today include total social financing (TSF) and broad M2 money supply in September for China, consumer inflation in September across the eurozone.
Trading Ideas:
–Copper trading range for the day is 448.3-458.5.
–Copper prices fell as a trade war between the United States and the world’s top industrial metals consumer China weighed on the market.
–China’s unwrought copper imports surged to their highest in 2-1/2 years in September, while copper concentrate imports climbed to an all-time high.
–Yangshan copper import premiums have been near $120 since late September, levels last seen in 2015 and indicating strong demand.
Courtesy: Kedia Commodities
Source: Commodityonline.com
