COPPER

FUNDAMENTALS

Copper traded mostly volatile Monday, as the benchmark London Metal Exchange remained closed for Christmas. Copper prices firmed as most of the traders booked profits due to the yearend and LME’s off. Also dollars firmness Monday resulted in slight dip in copper from its intraday highs.

The prices have recently started improving as China’s SHFE inventories have fallen significantly and the market has now started expecting that China may come forward to buy at any time in the near future particularly when the prices appears to have obtained a floor.

Moreover copper prices were further backed by China’s Customs office report revealing the country’s November refined copper imports went up by 56% on year to 103,410 mt. China’s refined copper imports during January-November rose 89% on year to 1.38 million mt.

TECHNICALS

Copper prices have closed far above short and medium term EMA’s showing firmness. MACD is rising in negative zone showing decreasing bearish momentum in the market. However Stochastic Oscillator is in overbought region warranting caution to the bulls. Copper may trade volatile during Wednesday’s session; any dip in prices may be a good buying opportunity.

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