Technically Copper market is getting support at 359.1 and below same could see a test of 353.5 level, And resistance is now likely to be seen at 368, a move above could see prices testing 371.3.
Copper on MCX settled up 0.39% at 364.55 in volatile session as uncertainty about U.S. President Donald Trump's future undermined expectations of a boost to infrastructure spending in the United States. Benchmark copper on the London Metal Exchange closed 0.5 per cent lower to $US5,581 a tonne, after earlier touching a one-week low of $US5,485.
Pressure seen after weaker April economic data from China, which accounts for nearly half of global consumption of industrial metals, the second quarter normally sees stronger demand for industrial metals ahead of the construction season in the third quarter.
As a base metal that is a staple building block for infrastructure around the world, copper will take clues from the economic data in both China and the US. Over recent year Chinese economy cooled over recent years, copper entered into a bear market that took the price to last January's lows. China caught an economic cold and copper caught a case of pneumonia, falling by over 58% from 2011 through the beginning of 2016.
However, it was the promise of U.S. infrastructure rebuilding that caused the most recent rally in the red metal. While economic growth in the U.S. and China and the potential for legislation that fulfills the promises of the Trump Administration will dictate the path of least resistance for the price of copper, it now seems that there could be a bumpy road ahead. Given that the administration and Congress are becoming distracted with the politics of controversy.
--Copper trading range for the day is 353.5-371.3.
--Copper recovered on rupee weakness while uncertainty about Donald Trump's future undermined expectations of a boost to infrastructure spending in US.
--China and U.S. domestic policy will dominate the path of least resistance for copper and other base metals
-Weaker April economic data from China, which accounts for nearly half of global consumption of industrial metals
Courtesy: Kedia Commodities