MCX Copper under fresh selling; Support seen at 448.2
Commodity Online | September 12 2019
UPDATED 09:40:27 IST

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Technically Copper market is under fresh selling as market has witnessed gain in open interest by 16.01% to settled at 5362 while prices down 3.35 rupees.

Now MCX Copper is getting support at 448.2 and below same could see a test of 445.9 levels, and resistance is now likely to be seen at 454.1, a move above could see prices testing 457.7. 

Copper on MCX settled down 0.74% at 450.45 after a sharp fall in Chinese auto sales underlined fears of weaker demand from the world's largest consumer of metals.

Concerns over China's economic outlook outweighed any optimism from a decision by Beijing to exempt some U.S. goods from additional tariffs – potentially easing tensions in a damaging trade dispute. Unless a U.S.-China trade deal is reached, prices will likely remain around current levels as weaker demand is offset by constraints on supply.

China's total auto sales fell 6.9% from the same month a year earlier to 1.96 million, the China Association of Automobile Manufacturers said, warning of weak sales ahead.Refined copper cathode production by major Chinese smelters fell by 0.5% in August from a month earlier, a survey by research house Antaike showed. On-warrant inventories available to the market in LME-registered warehouses rose to 228,400 tonnes, down from around 300,000 tonnes last month but double the quantity at the start of the year.

An indefinite strike by mining unions in Peru that started on Tuesday has failed to draw large numbers of workers and has not affected output at mines in the world's No.2 copper, zinc, and silver producer, an industry association said.China’s factory gate prices contracted for the second month in August and at a sharper rate, reinforcing the urgency for Beijing to step up stimulus to support the manufacturing sector and the broader economy.

Trading Ideas:
--Copper trading range for the day is 445.9-457.7.
--Copper prices fell after a sharp fall in Chinese auto sales underlined fears of weaker demand from the world's largest consumer of metals.
--Refined copper cathode production by major Chinese smelters fell by 0.5% in August from a month earlier, a survey by research house Antaike showed.
--On-warrant inventories available to the market in LME-registered warehouses rose to 228,400 tonnes, down from around 300,000 tonnes last month.

Courtesy: Kedia Commodities

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