Support seen at 321.9 for MCX Copper
Commodity Online | September 16 2016
UPDATED 12:25:56 IST

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Copper on MCX settled up 0.23% at 323.30 rose touching its highest since Aug. 22 on a spate of upbeat Chinese data. Copper prices are holding up well above 320 level compared to other base metals which are still under pressure as support also seen from stocks of copper which slipped 0.7 percent, or 2,275 tonnes, to 349,225 tonnes, data from the LME showed. LME Copper had edged down 0.1 percent to $4,767.50 a tonne, having jumped 2.6 percent on Wednesday when it also touched its loftiest since Aug. 22 at $4,781. Activity seems to be in the range in today's session as China's financial markets are closed from Thursday through Sunday for the Mid-Autumn Festival.

Meanwhile, Japanese manufacturers' confidence bounced from a three-year low, while sentiment in the services sector hit its lowest since 2013 when the central bank began bold monetary stimulus, underscoring a fragile economic recovery. Sentiments improved as China's economy shows signs of finding its feet. Also encouraging signals out of China's housing market and indications of a revival in its factory sector over the summer have stoked views that demand is quietly cranking up for the third quarter. While Data released earlier showed that retail sales in the U.S. declined for the first time in five months, fueling concerns over the economic outlook.

The Commerce Department said that retail sales dropped 0.3% from the prior month, compared to the forecast for a decline of 0.1%. Core retail sales, which excludes automobile sales, unexpectedly fell by a seasonally adjusted 0.1% in August, compared to forecasts for an advance of 0.2%. Technically market is under short covering and getting support at 321.9 and below same could see a test of 320.3 level, and resistance is now likely to be seen at 324.8, a move above could see prices testing 326.1.

Trading Ideas:

--Copper trading range for the day is 320.3-326.1.

--Copper gained as prices remained supported as China's economy shows signs of finding its feet.

--China's bank lending more than doubled in August from the previous month, a report showed, adding to brighter economic readings.

--Peru’s copper output jumped to 207,867 mt in July of 2016, an almost 30% growth from last year’s production of 155,313 million tonnes.

Courtesy: Kedia Commodities