MCX Copper under long liquidation; Support seen at 444.5

Technically Copper market is under long liquidation as market has witnessed drop in open interest by 4.49% to settled at 11016 while prices down 2.85 rupees.

Now MCX Copper is getting support at 444.5 and below same could see a test of 442.7 level, And resistance is now likely to be seen at 449.2, a move above could see prices testing 452.1.

Copper on MCX settled down 0.63% at 446.30 prices eased overnight as worries over global economic growth lingered, with aluminium also weakening after a major producer warned about softer demand. A steady drum beat of weak economic data in recent weeks, including in top metals consumer China, has stoked fears of a global recession.

Meanwhile  Industrial output in Europe’s biggest economy, Germany, registered an unexpected fourth consecutive monthly decline in December, data showed on Thursday, while the Bank of England said Britain faces its weakest economic growth in a decade.

Also dampening sentiment was news that US President Donald Trump and China’s Xi Jinping are unlikely to meet before their countries’ March 1 deadline to reach a trade deal. Weighing on the complex was a firmer dollar index , making dollar-denominated metals more expensive for holders of other currencies.

Sentiments may drop as US President Donald Trump said on Thursday he did not plan to meet with Chinese President Xi Jinping before a March 1 deadline set by the two countries to achieve a trade deal.

The remarks confirmed comments from administration officials who said the two men were unlikely to meet before the deadline, dampening hopes of a quick trade pact and sparking a drop in U.S stock markets.

Trading Ideas:
–Copper trading range for the day is 442.7-452.1.
–Copper prices dropped amid a stronger dollar and on persistent worries about global growth.
–China’s factory activity shrank by the most in almost three years in January as new orders slumped further and output fell, a private survey showed.
–U.S. Treasury Secretary Steven Mnuchin said that he and other U.S. officials will travel to Beijing next week for trade talks.

Courtesy: Kedia Commodities