MCX Copper under long liquidation; Resistance seen at 434
Commodity Online | November 22 2019
UPDATED 09:40:18 IST

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Technically Copper market is under long liquidation as market has witnessed drop in open interest by 12.4% to settled at 5586 while prices down 4.45 rupees.

Now MCX Copper is getting support at 429.5 and below same could see a test of 427.8 levels, and resistance is now likely to be seen at 434, a move above could see prices testing 436.8.

Copper on MCX settled down 1.02% at 431 as a possible delay in a much-awaited "phase one" trade deal between Washington and Beijing weighed on sentiment.

Completion of a "phase one" U.S.-China trade deal could slide into next year, trade experts and people close to the White House said, as Beijing presses for more extensive tariff rollbacks while Washington counters with heightened demands of its own. Officials from Beijing had earlier suggested that Chinese President Xi Jinping and U.S. President Donald Trump might sign a deal by early-December.

Possibly complicating the trade negotiations further, the U.S. House of Representatives on Wednesday passed two bills to back protesters in Hong Kong and send a warning to China about human rights, which the Senate passed the day before, angering Beijing. Miner Freeport-McMoRan Inc and China's Jiangxi Copper have agreed treatment and refining charges (TC/RC) of $62 a tonne and 6.2 cents per pound for copper concentrate supply in 2020.

The global world refined copper market showed a surplus of 29,000 tonnes in August, compared with 71,000 tonnes deficit in July, the International Copper Study Group (ICSG) said in its latest monthly bulletin. The Trump administration gave Huawei its second reprieve this week, allowing some suppliers to restart sales to the Chinese telecoms giant after it was placed on a trade black list over national security concerns six months ago.

Trading Ideas:
--Copper trading range for the day is 427.8-436.8.
--Copper prices dropped as a possible delay in a much-awaited "phase one" trade deal between Washington and Beijing weighed on sentiment.
--Officials from Beijing had earlier suggested that Chinese President Xi Jinping and U.S. President Donald Trump might sign a deal by early-December.
--The global world refined copper market showed a surplus of 29,000 tonnes in August, compared with 71,000 tonnes deficit in July.

Courtesy: Kedia Commodities

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