Weekly Outlook on Natural Gas - 07 June 2024
Weekly Outlook on Copper - 20 October 2023
Last Updated: 23rd October 2023 - 12:11 pm
Copper, a crucial player in the industrial metal scene, witnessed a marginal 0.01% uptick, closing at 700.55. However, the excitement was tempered by soaring concerns over a substantial surge in copper inventories, hitting a two-year high of 191,675 tons in LME-registered warehouses. This surge in stockpiles emerged as the primary catalyst exerting downward pressure on copper prices.
Complicating matters further, China's economic indicators painted a mixed picture. Despite a 4.9% GDP growth in the third quarter, surpassing expectations and suggesting a tentative economic recovery fueled by recent policy measures, concerns persisted. The market found support in increased consumption and industrial activity in September.
Peru, the world's second-largest copper producer, contributed to the narrative with the Ministry of Energy and Mines reporting a 7.5% increase in copper production, reaching 223,178 tonnes in August 2023 compared to the same month in 2022 (207,588 tonnes). Sociedad Minera Cerro Verde played a significant role in this surge, marking a notable 10.8% increase and maintaining production levels above 36,000 tonnes throughout the year.
MCX copper is currently in proximity to the immediate support level of 693, following a breakdown of the Symmetrical Triangle pattern on the daily timeframe. The momentum indicator, RSI (14), standing at 37 with a negative crossover, signals potential further downside in the near term. Adding to the bearish outlook, prices are lingering below the 50*100 days Simple Moving Averages.
The market witnessed a notable -6.6% decrease in open interest, settling at 6,391. Given these indicators, the outlook for the coming days suggests a sideways to bearish movement in copper futures. Traders might consider a sell-on-rise strategy to leverage the anticipated momentum in the near term.
A breach of the 693 support level could pave the way for a downside move toward 685 and 680. Conversely, resistance levels are identified at 715 and 723 on the upper side.
Important Key Levels:
MCX COPPER (Rs.) |
LME COPPER ($) |
|
Support 1 |
685 |
7910 |
Support 2 |
680 |
7830 |
Resistance 1 |
715 |
8050 |
Resistance 2 |
723 |
8120 |
Trending on 5paisa
Discover more of what matters to you.
Commodities Related Articles
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.