COPPER

FUNDAMENTALS

Copper traded volatile during Monday’s session. Copper prices firmed a bit extending weekends gains from expectation of another rate cut by the Federal Reserve in its upcoming meeting and weakness in the US dollar against the Euro.

Though, losses in equity markets, weakness in crude oil prices, additions in LME inventories and concerns about the subprime market and credit markets along with slowing US economy tried to pressurize copper. LME copper closed with modest gains Monday.

LME warehouse copper inventories increased by 975 mt to build 187,400 mt on Monday. Comex copper stocks remained steady at 17,981 st.

Copper may trade choppy obtaining slight firmness from chances of Fed likely to reduce interest rates and following persistent weakness in the US dollar against the euro. The prices may be subdued on increasing LME stocks, US economy’s continuous slowdown and credit market concerns.

TECHNICALS

Copper chart is displaying prices have rebound from recent lows. Copper prices have closed below short and medium term EMA’s showing weakness. MACD is rising in negative zone showing decreasing bearish momentum. RSI and Stochastic Oscillator are rising in neutral region indicating firmness. Copper may trade volatile during the session.

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