MCX Copper expected to trade 307-310 levels
Commodity Online | August 30 2016
UPDATED 10:50:07 IST

NCDEX Chana under fresh buying; Support seen at 5056

MCX Cotton under fresh buying; Support seen at 17950

NCDEX Jeera under fresh selling; Resistance seen at 14140

NCDEX Turmeric under fresh selling; Support seen at 5844

NCDEX Mustard Seed under long liquidation; Resistance seen at 5343

Copper on MCX settled up 0.13% at 308.35 marginally while traded in the range tried to recover after falling for the last six sessions in a row, as the market waits on U.S. non-farm payrolls data later this week for further clues on the timing of any U.S. rate hike. Three-month copper on the London Metal Exchange had edged up 0.5 percent to $4,638 a tonne, from Friday's session when prices had dropped to their weakest in two months at $4,615 a tonne. From U.S. Federal Reserve Chair Janet Yellen said on Friday the case for "an increase" in the policy rate has strengthened in recent months due to improvements in the labor market and expectations for solid economic growth.

Friday's non farm report for August, as well as other data, could reinforce hawkish messages from Yellen and other Fed officials. Also employers are expected on Friday to show 180,000 job gains in August, while US consumer spending increased for a fourth straight month in July amid strong demand for automobiles, pointing to a pickup in economic growth that could pave the way for the Fed to raise interest rates this year. In news that could herald lower supply of metals produced by aging China smelters, China's parliament has proposed increasing tax benefits for companies that cut pollution by more than the national standard.

Now in the week ahead, investors will focus on U.S. economic reports to gauge if the world's largest economy is strong enough to withstand a hike in interest rates in the coming months, with Friday’s non farm payrolls data in the spotlight. Technically now Copper is getting support at 307.7 and below same could see a test of 307 level, and resistance is now likely to be seen at 309.2, a move above could see prices testing 310.

Trading Ideas:
--Copper trading range for the day is 307-310.
--Copper prices traded in the range as a holiday in London market drained the market of direction.
--Global copper stockpiles outside of China are expected to rise for the remainder of the year, as China's imports slow and its exports stay robust.
--Hedge funds and money managers switched back to a net short position in COMEX copper futures and options in the week to Aug. 23, US CFTC data showed.

Courtesy: Kedia Commodities