copper intraday

Copper future expected to fell
12 June 2008 10:50:32

MCX Copper June traded in tight range of 333.5 to 338.35 and closed at 337.55 with minor gains, although market is having some bearish sentiments.

Copper futures fell in Asia as the dollar rebounded, curbing demand from investors seeking to buy commodities denominated in the U.S. currency as an alternative asset and hedge against inflation.

The dollar rose against the euro and the yen on speculation a government report today will show U.S. retail sales climbed in May, easing concern the world's largest economy is heading into a recession. Weakness in the dollar has helped copper rally 18 percent this year.

Copper for delivery in three months on the London Metal Exchange, which reached a record $8,880 a ton on April 17, was down 0.4 percent at $7,890 a metric ton.

China's imports of copper and copper products dropped 19 percent last month to the lowest since August as higher overseas prices deterred buyers and increased domestic production boosted supplies.

Codelco, the world's biggest copper producer, said a natural-gas plant in northern Chile being built with France's Suez SA will start in the first quarter of 2010. Construction has begun on the $500 million project, jointly owned with Suez, Chilean state-owned Codelco said.

Codelco announced last year it would use tankers to import liquefied natural gas, which would then be turned back into gas at the plant.

Power costs in Chile, which mines 35 percent of the world's copper, may fall to ``normal'' levels in about 2012 from near records currently as the country adds about 20 percent to generating capacity, said Nelson Pizarro, chief executive officer of Minera Lumina Copper Chile SA.

MCX Copper June - Technical Outlook:
The daily stochastics have crossed over down which is a bearish indication. The prices closed below short term and medium term EMA, which supports bears. MACD is heading downwards in positive region, showing decrease in bullish momentum.

Technical are neutral to bearish signalling sideways to lower prices in the near term. Initial support for the market is around 334.58 levels. If broken can see further fall to 331.62 and 329.73, If market holds above 336.47 further rally can be seen towards 339.43 and 341.32

Recommendations-MCX Copper June: Sell at 337.50-338 Target 335 and 332 SL 339.80


MCXARUN
9994500540