Weekly Outlook on Copper - 17 May 2024

Sachin Gupta Sachin Gupta

Last Updated: 17th May 2024 - 06:14 pm

Listen icon

Copper prices have surged to record highs globally, driven by strong long-term trends and tightening supply. The metal has seen a significant rise on Wednesday and hit an all-time high in the market.

copper-chart

So far in 2024, copper has experienced a substantial 19 percent increase. The London Metal Exchange (LME) reports copper trading at a two-year high, while markets in the CME, Shanghai, and India have all recorded unprecedented prices, bolstered by robust gains in April and May.

The recent copper rally has been further fueled by new stimulus measures from China. Despite a recent economic slowdown in the world's largest copper consumer, the Chinese government issued bonds worth 1 trillion yuan last week to stimulate critical sectors. This move is expected to boost demand. Several factors have enhanced the long-term outlook for copper. There is strong demand from electric vehicle manufacturers, data centers, the renewable energy sector, and the defense industry. These sectors are expected to drive significant growth in copper consumption, reinforcing the bullish sentiment in the market.

Overall, technical outlook for copper remains bullish, supported by strong price trends, favorable moving averages, high RSI, and robust trading volumes. While the market might experience short-term corrections, the overall trend points to higher prices, especially with ongoing demand from key sectors and supportive economic measures. Investors should watch for potential buying opportunities during pullbacks and monitor key support and resistance levels for further guidance. The immediate support for copper is placed around 875 & 860 levels while upside potential resistance could be around 950/970 levels. 

Important Key Levels:

  MCX COPPER (Rs.) COMEX COPPER ($)
Support 1 875 4.76 
Support 2 860 4.60
Resistance 1 950 5.15
Resistance 2 970 5.28

 

How do you rate this article?
Characters remaining (1500)

FREE Trading & Demat Account
+91
''
By proceeding, you agree to our T&Cs*
Mobile No. belongs to
hero_form

Commodities Related Articles

Weekly Outlook on Gold - 24 May 2024

by Sachin Gupta 27th May 2024

How Long Gold Price Sustain to Shine in India!

by Tanushree Jaiswal 8th May 2024

Weekly Outlook on Gold - 05 April 2024

by Sachin Gupta 5th Apr 2024

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.

Want to Use 5paisa
Trading App?