COPPER

FUNDAMENTALS

Copper traded volatile during the mid week’s session. Copper prices continued down initially on concerns about global economy’s growth but thereafter rebound to close positive following gains in equity markets particularly after the release of positive Japanese industrial production numbers.

The market some what ignored weaker than expected US durable orders and existing home sales data instead took it positively as it increased chances of Fed to go for a rate cut in the near term. 

Firmness in the US dollar against major rivals, weakness in crude oil prices and increase in warehouse stocks added further volatility to the copper prices.

LME warehouse copper inventories grew by 1225 mt to 188,225 mt on Wednesday. Comex copper stocks remained steady at 17,981 st.

The market participants are now expecting China’s State Reserve Bureau may restock copper some time in 2008.

TECHNICALS

Copper chart is displaying slight tentativeness near the current levels. Copper prices have closed below short and medium term EMA’s showing weakness in the market. MACD is rising in negative zone showing decreasing bearish momentum. Stochastic Oscillator and RSI are rising in neutral region showing firmness. Copper may trade volatile during the session.

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