COPPER

FUNDAMENTALS

MCX Copper prices were marginally up during Saturday’s short session following prior day’s recovery. The prices rebound due to profit booking by the short position holders following new highs of crude oil prices and dollars persistent weakness against most of the counterparts.

LME warehouse copper inventories build by 1200 mt to reach 148,950 mt Friday. Copper smelters are at a risk of output cuts due to falling treatment and refining charges.

The Energy and Mines Ministry of Peru on Friday revealed Peru’s copper output during August increased by 28% on year to 109,130 mt.

The Chamber of Mines of Zambia stated that Zambia may witness 1.2 million mt of copper production by 2009. The increase is expected to occur due to new investment in old mine rehabilitation and expansion.

Hefty increase in LME warehouse stocks and renewed credit market concerns may weigh on copper prices. However copper may obtain support from rise in crude oil prices and weakness in the US dollar.

TECHNICALS

Candlestick pattern are showing bullish sentiments at current levels. The prices have closed below short & medium term EMA’s showing weakness in the market. MACD is falling in negative zone showing bearish momentum in the market. Stochastic Oscillator is falling in oversold region warranting caution to the bears. RSI is rising in neutral region indicating firmness. Copper prices may trade volatile during the session.    

Click here to download full report

Reliance Money Disclaimer