Technically Copper market is under fresh selling as market has witnessed gain in open interest by 2.23% to settled at 3721 while prices down 2.2 rupees.
Now MCX Copper is getting support at 714.3 and below same could see a test of 710.9 levels, and resistance is now likely to be seen at 721.5, a move above could see prices testing 725.3.
Copper yesterday settled down by 0.31% at 717.55 on a stronger dollar and concern about the impact of power cuts in top metals consumer China, where the economy has already been weakening.
Profit growth at China’s industrial firms slowed for a sixth month as plants fought off high commodity prices, COVID-19 outbreaks and part shortages. MG Ltd said it would stop operations at its copper mine at Las Bambas in Peru this week, as community protests in a nearby province has upended transport.
The global world refined copper market showed a 90,000 tonnes deficit in June, compared with a 4,000 tonnes surplus in May, the International Copper Study Group (ICSG) said in its latest monthly bulletin.
For the first 6 months of the year, the market was in a 2,000 tonnes deficit compared with a 67,000 tonnes surplus in the same period a year earlier, the ICSG said.
World refined copper output in June was 2.03 million tonnes , while consumption was 2.12 million tonnes. On the macro front, Fed Chair Powell expressed that the employment market was still ideal and the goods prices have been on the rise due to supply difficulties, sending out dovish signals.
Trading Ideas:
–Copper trading range for the day is 710.9-725.3.
–Copper prices slipped on a stronger dollar and concern about the impact of power cuts in China, where the economy has already been weakening.
–Profit growth at China’s industrial firms slowed for a sixth month as plants fought off high commodity prices, COVID-19 outbreaks and part shortages.
–MG Ltd said it would stop operations at its copper mine at Las Bambas in Peru.
Courtesy: Kedia Commodities
Source: Comodity Online
