Copper yesterday traded with the positive node and settled 2.18% up at 434.15 as support seen greece's political leaders finally reached an agreement on a set of austerity measures and reforms Thursday following long delay, opening the door for the EU, IMF and other European countries to offer the second round of bailout deal for the country, and also clearing the way for Greece to finish the budget-cutting deal with private creditors as soon as possible.
ECB Mario Draghi would likely provide 130-billion-euro to Greece in the second round of bailout package, which boosted market risk appetites.
In response, the euro increased considerably, pushing up LME Copper prices.
Besides, the US later announced initial jobless claims fell further to 235,000, below the prior data and market anticipation, and this resulted in a high close in US equities.
As a result, LME copper prices gained momentum and jumped to USD 8,700/mt from USD 8,600/mt before finally ending at a recent high of USD 8,740/mt, a surge of more than 2%.
Positive news overnight will continue to prop up LME Copper price trends, but profit-taking at the highs will dampen the upward momentum.
For today's session market is looking to take support at 427.2, a break below could see a test of 420.2 and where as resistance is now likely to be seen at 437.9, a move above could see prices testing 441.7.
Trading Ideas:
Copper trading range for the day is 420.2-441.6.
Copper yesterday traded with the positive node as support seen Greece’s political leaders finally reached an agreement
LME copper prices gained momentum and jumped to USD 8,700/mt from USD 8,600/mt before finally ending at recent high of USD 8,740/mt
Copper daily stocks at Shanghai exchange came up by 5401 tonnes
Courtesy: Kedia Commodities
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