MCX Copper under long liquidation; Resistance seen at 512.3
Commodity Online | July 23 2020
UPDATED 10:10:11 IST

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Technically Copper market is under long liquidation as market has witnessed drop in open interest by 11.59% to settled at 3378 while prices down 1.6 rupees.

Now MCX Copper is getting support at 503.3 and below same could see a test of 499.2 levels, and resistance is now likely to be seen at 512.3, a move above could see prices testing 517.2.

Copper yesterday settled down by 0.31% at 507.35 as a stronger dollar triggered profit-taking and markets waited to see how consumption will hold up outside China, where robust demand due to stimulus fuelled the recent rally.

The European Union approved a 750-billion-euro bill to aid their coronavirus-throttled economies. The difference between LME cash and three-month copper jumped to a premium of $9.95 a tonne, a level not seen since April 2019, indicating tight nearby supplies.

The global world refined copper market showed a 86,000 tonnes deficit in April, compared with a 3,000 tonnes deficit in March, the International Copper Study Group said.

For the first 4 months of the year, the market was in a 59,000 tonnes surplus compared with an 181,000 tonnes deficit in the same period a year earlier, the ICSG said.

World refined copper output in April was 1.98 million tonnes, while consumption was 2.07 million tonnes. Bonded stocks of copper in China showed a 131,000 tonnes deficit in April compared with a 2,000 tonnes surplus in March.

In Jan-Apr copper world mine production was 6.62 million tonnes which was 1.9% higher than in 2019. Global refined production was 7.9 million tonnes, up 6.2% compared with 2019, China and Chile recorded significant increases.

Trading Ideas:
--Copper trading range for the day is 499.2-517.2.
--Copper prices fell as a stronger dollar triggered profit-taking and markets waited to see how consumption will hold up outside China.
--The difference between LME cash and three-month copper jumped to a premium of $9.95 a tonne, indicating tight nearby supplies.
--The global world refined copper market showed a 86,000 tonnes deficit in April, compared with a 3,000 tonnes deficit in March.

Courtesy: Kedia Commodities