Technically Copper market is under fresh selling as market has witnessed gain in open interest by 5.81% to settled at 4792 while prices down 5.85 rupees.
Now MCX Copper is getting support at 727 and below same could see a test of 720.7 levels, and resistance is now likely to be seen at 741.8, a move above could see prices testing 750.3.
Copper yesterday settled down by 0.79% at 733.15 as the dollar seen on positive sentiment from a virtual meeting between the leaders of the world’s largest economies.
The closely watched conversation between Chinese President Xi Jinping and U.S. President Joe Biden yielded no immediate outcomes but struck a positive tone and was seen as a chance to improve relations.
However downside seen limited on positive developments from a meeting between U.S. President Joe Biden and his Chinese counterpart Xi Jinping.Biden and Xi stressed their responsibility to the rest of the world to avoid conflict. Xi called Biden an “old friend” and said the two sides must increase communication and cooperation.
The premium of LME cash copper over the three-month contract fell to $32.50 a tonne, the lowest level since Oct. 8, indicating that the tightness in nearby supplies has eased.On-warrant copper inventories in LME-registered warehouses are at their highest in nearly a month at 53,175 tonnes.
U.S. retail sales rose more than expected in October, giving the economy a lift at the start of the fourth quarter and raising the likelihood of a tightening in monetary policy. China said it would continue raising coal supply as part of attempts to cool prices and increase power generation capacity.
Trading Ideas:
–Copper trading range for the day is 720.7-750.3.
–Copper dropped as the dollar seen on positive sentiment from a virtual meeting between the leaders of the world’s largest economies.
–However downside seen limited on positive developments from a meeting between U.S. President Joe Biden and his Chinese counterpart Xi Jinping.
–The premium of LME cash copper over the three-month contract fell to $32.50 a tonne, the lowest level since Oct. 8.
Courtesy: Kedia Commodities
Source: Comodity Online
