Weekly Outlook on Natural Gas - 07 June 2024
Weekly Outlook on Copper
![Weekly Outlook on Copper Weekly Outlook on Copper](https://storage.googleapis.com/5paisa-prod-storage/files/2024-06/weekly-report-copper.png)
![Sachin Gupta Sachin Gupta](https://storage.googleapis.com/5paisa-prod-storage/files/2022-07/sachin-gupta.jpg)
Last Updated: 28th June 2024 - 05:04 pm
Copper prices have continued to decline due to a stronger dollar and weak demand from China. Recently, copper prices fell by 0.77%, closing at 834.25. This decrease reflects concerns about global demand uncertainty and rising inventories.
Market sentiment has been negatively affected by disappointing PMI reports, indicating a bleak outlook for manufacturing in major economies. Additionally, there are signs of slowing industrial demand in China. Despite expectations of a seasonal decrease, Chinese copper inventories remained high in June due to robust domestic production and increased smelting output from scrap.
In Shanghai Futures Exchange-monitored warehouses, inventory levels showed a slight decline last week but remained higher compared to earlier in the year. Meanwhile, London Metal Exchange (LME) approved warehouse stocks surged over 60.3% since mid-May, reaching 167,825 tons. This increase was mainly due to deliveries from Asian warehouses, primarily sourced from China.
As per the technical setup and price action, the outlook for copper remains bearish unless there is a strong reversal signal. Traders should watch for a break below the 832 support level for further downside, while any rebound will likely face resistance around the 850-858 levels. Monitoring RSI and volume for signs of a potential reversal or continuation of the bearish trend is crucial.
Important Key Levels:
MCX COPPER (Rs.) | COMEX COPPER ($) | |
Support 1 | 832 | 4.23 |
Support 2 | 820 | 4.14 |
Resistance 1 | 850 | 4.47 |
Resistance 2 | 858 | 4.55 |
Disclaimer: Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
Trending on 5paisa
Discover more of what matters to you.
Commodities Related Articles