Base Metals

Base Metals


Copper prices declined in Asia as a rout in global equities raised concern that slower economic growth may crimp demand for metals.

Housing starts in the U.S. probably fell to a 14-year low in November, according to the median estimate of 70 economists surveyed by Bloomberg News. Permits, an indicator of future construction, dropped to a 1.15 million rate from 1.17 million, the survey said.

The metal, which tracks the global economy, is heading for the smallest gain in six years. Industrial metals prices have probably peaked and may decline over the next 12 to 18 months, Fitch Ratings said in a report published yesterday.

Mining stocks including Freeport-McMoRan Copper & Gold Inc., the world's second-largest copper producer, fell the most in almost a month yesterday.

The MSCI Asia Pacific Index lost as much as 1.1 percent, and stood little changed at 152.18 as of 3:36 p.m. in Singapore, set for its lowest close since Sept. 18. London Metal Exchange copper, the global benchmark, fell to a nine-month low today at $6,335 a metric ton.

From January through October, global zinc output rose 7.6 percent to 9.45 million tons, according to the International Lead and Zinc Study Group. Zinc demand increased to 9.5 million tons, from 9.22 million tons a year earlier, the Lisbon-based group said yesterday.

copper

Technical Outlook:

Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from over bought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 18-day moving average. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Copper Feb: buy at 254-254.5 for the target of 256.40, 258.70 and 260 with stop loss at 252.00



MCX Zinc

Technical Outlook:

Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are increasing from over sold level, which is bullish and should support higher prices. The market's short-term trend is negative as the close remains below the 18-day moving average. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Zinc Dec: buy at 89.50-90.00 for the target of 91.00 and 92.65 with stop loss at 88.00

MCX Nickel Dec
Technical Outlook:

Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is negative as the close remains below the 18-day moving average. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Nickel Dec: buy at 1020-25 for the target of 1037 and 1050 with stop loss at 1010

MCX Lead Dec
Technical Outlook:

Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are on hold from over sold level, which is bullish and should support higher prices. The market's short-term trend is negative as the close remains below the 18-day moving average. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Lead Dec: buy at 96.50-97.00 for the target of 99.00 and 100.70 with stop loss at 95.20

MCXARUN