MCX Copper under long liquidation; Support seen at 429

Technically Copper market is under long liquidation as market has witnessed drop in open interest by 4.63% to settled at 10419 while prices down 6.7 rupees.

Now MCX Copper is getting support at 429 and below same could see a test of 425.3 level, And resistance is now likely to be seen at 438, a move above could see prices testing 443.3.

Copper on MCX settled down 1.53% at 432.60 on long liquidation after China expressed anger at the mission through the disputed South China Sea after U.S. President Donald Trump said last week that he did not plan to meet with Chinese President Xi Jinping before a March 1 deadline for a trade deal.

While today things are cool down after U.S. President Donald Trump said he could see the deadline for a trade agreement with top metals consumer China being pushed back. The world’s two biggest economies are currently holding their latest round of trade talks in Beijing.

If they cannot reach a deal to end their trade dispute by March 1, U.S. tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 percent from 10 percent. Last night LME base metals, except lead, traded lower on Tuesday.

Zinc and aluminium dropped 1.2%, nickel slipped 0.6% and copper fell 0.4%. The US dollar fell on Tuesday after eight days of gains, the longest in two years, as investors turned to riskier assets on optimism over the outcome of US-China trade talks.

From data point US job openings rebounded to a record high in December, underscoring robust demand for workers. The number of positions waiting to be filled rose by 169,000 to 7.34 million, from an upwardly revised 7.17 million in the prior month, according to the Labor Department’s JOLTS released on Tuesday.

Trading Ideas:
–Copper trading range for the day is 425.3-443.3.
–Copper dropped as pressure seen after Chilean state miner Codelco said it hoped to restart operations soon at its Chuquicamata copper mine.
–Consumption growth in China is likely to slow further this year, a commerce ministry official said, adding that slower growth last year.
–However, retail sales this year would still be growing at a steady, relatively fast pace, a commerce ministry official told reporters.