Technically Copper market is under fresh buying as market has witnessed gain in open interest by 11.15% to settled at 4426 while prices up 11.9 rupees.
Now MCX Copper is getting support at 732.1 and below same could see a test of 723.3 levels, and resistance is now likely to be seen at 747.1, a move above could see prices testing 753.3.
Copper yesterday settled up by 1.63% at 740.75 as the energy crisis has overwhelmed the globe. US non-farm payrolls for September added 194,000, which was way below the market estimated and recorded the slowest gain since the beginning of this year.
The good news that the unemployment rate has been declining steadily. The market is still uncertain as for the Fed’s tapering decisions. The ration of cancelled warrants of LME copper still stood at an extremely high level, while the registered warrants remained low.
LME copper inventory kept falling. In China, the SHFE copper inventory and social inventory both advanced slightly from a low level after the National Day holiday. The post-holiday power rationing policy has still been intensive, constraining the increase in supply.
China released 150,000 tonnes of industrial metals from its state reserves in the fourth round of sales this year as it continues a campaign to ease supply tightness and tame high commodity prices.
The world’s top metals consumer offered processors and manufacturers the chance to bid for 30,000 tonnes of copper, 70,000 tonnes of aluminium and 50,000 tonnes of zinc reserves on online platforms operated by state-run China Minmetals Corp and Norinco.
Trading Ideas:
–Copper trading range for the day is 723.3-753.3.
–Copper prices rose as the energy crisis has overwhelmed the globe.
–US non-farm payrolls for September added 194,000, which was way below the market estimated and recorded the slowest gain since the beginning of this year.
–The ration of cancelled warrants of LME copper still stood at an extremely high level, while the registered warrants remained low.
Courtesy: Kedia Commodities
Source: Comodity Online
