copper intraday

MCX Copper gives back its earlier gains and closed at 360.05 with loss of Rs. 2.25 per kg from Saturdays closing, low registered near 356.80. Intra day high was at 364.50

A stronger dollar and weaker precious metals pressured copper futures mildly Monday as opinions are mixed on support for the market from Chinese buyers.

The rise in the dollar and the slide in precious metals spurred long liquidation in copper. Some pressure may also be coming to the market from the overall weakness of the U.S. economy and the belief that the Chinese may be stocked up with the copper they need for now, at least until after the Olympics.

The dollar's strength was constraining the upside potential for copper coming from Chinese demand.

Copper futures were holding at relatively strong levels despite Chinese import data that is pressuring the market. Copper prices remain strong despite coming under pressure from the Chinese trade data which confirmed preliminary data showing refined imports falling 26.4% m/m, Copper scrap imports also came in lower at 496Kt, the lowest in two months, as did copper concentrates, which at 416kt (gross weight), were 17.6% below April levels.


Inventories of copper stored in London Metal Exchange warehouses fell 875 metric tons Monday, leaving them at 123,125. The most recent Comex inventory data, released late Friday afternoon, were unchanged at 11,040 short tons.


MCX Copper June - Technical Outlook:

The daily stochastics have crossed over up which is a bullish indication. The prices closed above short term and medium term EMA, which supports bears. MACD is heading upwards in positive region, showing increase in bullish momentum.

Technical are still neutral to bullish and market is expected to remain positive above 364.1 levels. If sustain above this level can see a rally towards 368.2 and 371.8, If market sustains below 360.5 can see a further fall towards 356.4 and 352.8


Recommendations-MCX Copper June: Buy at 358-357.50 target 365 and 371 SL 355.40


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