COPPER

FUNDAMENTALS

Copper prices consolidated during Tuesday’s session tracking recovery in equity markets and gains in Euro against the dollar.

LME warehouse stocks however continued to build with addition of 425 mt to build 151,525 mt Tuesday.

Copper prices were however restricted by weakness in crude oil prices, increase in LME copper inventories, renewed credit market concerns and absence of demand at current levels.  

Negotiations between copper miners and smelters for treatment and refining charges are on the way these days. Smelters are asking for higher TC/RC though miners appear reluctant.

Copper market is eyeing the release of Wednesday’s existing home sales data, until then the prices may move volatile in narrow price range.

TECHNICALS

Candlestick pattern are showing bearish sentiments. 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 most likely to make a bearish crossover in oversold region indicating weakness. RSI is falling in neutral region indicating weakness. Copper may trade volatile with weak bias during the session.  

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