MCX Copper under long liquidation; Resistance seen at 455.6
Commodity Online | January 17 2020
UPDATED 09:40:45 IST

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Technically Copper market is under long liquidation as market has witnessed drop in open interest by 3.42% to settled at 4205 while prices down 3 rupees.

Now MCX Copper is getting support at 450.1 and below same could see a test of 447.9 levels, and resistance is now likely to be seen at 455.6, a move above could see prices testing 458.9.

Copper on MCX settled down 0.66% at 452.25 on investors' doubt that the recently signed U.S.-China trade agreement would improve metals demand.

Washington and Beijing signed a Phase 1 trade deal that will roll back some tariffs and boost Chinese purchases of U.S. products, defusing an 18-month row that has hurt global economic growth and metals demand.

But investors are worried that the pact would not substantially boost metals demand as the deal left a number of sore spots unresolved, while demand has not improved significantly to support prices. New home prices in China's 70 major cities rose 6.6% in December from a year earlier, the slowest since July 2018, and down from November's 7.1% on-year increase.

Copper inventories in LME-approved warehouses fell to a 10-month low of 128,050 tonnes, latest data showed. However, the discount between LME cash and three-month contract expanded to a more than three-month high of $34.50 a tonne, suggesting no nearby supply shortage. The Labor Department said its producer price index for final demand inched up by 0.1% in December after coming in unchanged in November.

Trading Ideas:
--Copper trading range for the day is 447.9-458.9.
--Copper prices fell on investors' doubt that the recently signed U.S.-China trade agreement would improve metals demand.
--Copper inventories in LME-approved warehouses fell to a 10-month low of 128,050 tonnes, latest data showed.
--However, the discount between LME cash and three-month contract expanded to a more than three-month high of $34.50 a tonne.

Courtesy: Kedia Commodities