Copper rises on inventory data at SHFE
30 June 2008 10:38:21
Copper futures ticked to their highest level in 1 1/2 months Friday with the help of recent U.S. dollar weakness, inventory declines and chart-based momentum.
Much of the influence has been the recently softer U.S. dollar, Warrants and deliverable copper were down in Shanghai in a surprise drop, and LME stocks were a little bit lower although certainly not eye-popping
Once-a-week inventory data released on Fridays for the Shanghai Futures Exchange showed a fall of 1,016 metric tons to 32,401. Inventories of copper stored in London Metal Exchange warehouses fell 150 metric tons Friday, leaving them at 122,900.
Much of the buying in copper and other commodities has been inflation-related, Light speculative buying occurred.
A key for the markets this week will be a European Central Bank meeting. There are expectations for a rate hike, which may prompt further weakness in the dollar. This tends to support commodities such as copper.
However, such a move would also mean a slowing of the economy there, which also has demand implications for the metal.
The most recent Comex inventory data, released late Thursday afternoon, were steady at 11,040 short tons. Copper inventories at LME, increased by -150 MT to 122900 MT.
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 have turned neutral to bullish and market is expected to remain positive above 366.8 levels. If sustain above this level can see a rally towards 369.2 and 373.6, If market sustains below 362.4 can see a further fall towards 360.0 and 355.6
Recommendations-MCX Copper June: Buy at 366 Target 369 and 372 SL 364
MCXARUN
9994500540
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment