COPPER

FUNDAMENTALS

Copper prices surged in domestic exchanges as the LME returned after a few days’ holidays. LME copper hit a 3-week high following weakness in dollar and abolishing of tax by China on import of copper cathodes and anodes. The prices also obtained support from increase in crude oil prices.

Though thin trading at the yearend resulted in increased volatility with copper parring its some of the intra day gains, particularly after the release of lower than expected US durable orders and initial claims data.  Moreover copper further dipped owing to weakness in the US, Asian stock markets.

The INE, Chile's government statistics agency disclosed Chile's November copper production fell 1.5% on year to 469,812 mt from prior year Novembers 476,784 Mt. Copper production in January-November rose 4.2% to 5,055,025 mt from last year same period’s 4,850,679 mt.

TECHNICALS

Candlestick pattern is showing bearish sentiments. The prices have closed above short and medium term EMA’s showing firmness. MACD is rising in negative zone showing decreasing bearish momentum. Stochastic Oscillator is falling in overbought region and RSI is dipping in neutral region is indicating weakness. Copper may trade volatile during Friday’s session.

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