MCX Copper under short covering; Resistance seen at 419
Commodity Online | May 21 2020
UPDATED 10:10:59 IST

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Technically Copper market is under short covering as market has witnessed drop in open interest by 8.87% to settled at 2599 while prices up 5.4 rupees.

Now MCX Copper is getting support at 412.2 and below same could see a test of 407.9 levels, and resistance is now likely to be seen at 419, a move above could see prices testing 421.5.

Copper yesterday settled up by 1.31% at 416.55 as investors regained hopes of recovery from a coronavirus-fuelled recession. Prices of metals were also supported by market expectations that China, the world's biggest metals consumer, could announce more stimulus measures at a key parliament meeting later this week.

Sino-U.S. trade relations have turned sour following Washington's disappointment over the way China handled the novel coronavirus outbreak, raising fears that the countries could engage escalate their spat and hurt economic growth further.

Trump called the WHO a "puppet of China" and denounced an "apparent attempt to conceal this outbreak by at least one member state".France and Germany proposed a 500-billion-euro ($545.65 billion) Recovery Fund for European Union regions and sectors hit hardest by the pandemic.

China has approved import quotas for another 10,423 tonnes of high-grade copper scrap and 1,480 tonnes of aluminium scrap in 2020, the China Solid Waste and Chemicals Management Bureau said. The world's top metals consumer has so far approved import quotas for 540,184 tonnes of copper scrap, 478,159 tonnes of aluminium scrap and 11,540 tonnes of steel scrap in 2020, according to calculations on the official data.

Trading Ideas:
--Copper trading range for the day is 407.9-421.5.
--Copper prices gained as investors regained hopes of recovery from a coronavirus-fuelled recession.
--Sino-U.S. trade relations have turned sour following Washington's disappointment over the way China handled the novel coronavirus outbreak.
--China has approved import quotas for another 10,423 tonnes of high-grade copper scrap.

Courtesy: Kedia Commodities

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