COPPER

FUNDAMENTALS

Copper prices were once again hit by prevailing global economic health concerns. Japan’s government reduced its forecast of economic growth to 1.3% for the year ending March 31 against the prior forecast of 2.1%. The reason quoted is stricter rules to obtain building permits thus resulting in housing starts to decline to a four decade lows.

Though prices tried to recover a bit as the market saw release of slightly better than expected US housing starts and building permits data.

Copper was once again pressurized by sluggish year end demand and increasing inventories at the LME. LME warehouse copper stocks added 1200 mt to build 195,650 mt on Tuesday. However Comex copper stocks continued to drawdown and fell by 290 st to reach 15,634 st.

Dollars firmness and crude oils lows were also responsible for copper’s subdued prices.  Copper market my witness thin trading with weak copper prices due to yearend reduced buying and prevailing macro economic concerns.

TECHNICALS

Copper chart is showing a downtrend. Doji pattern of candlesticks is revealing indecision in the market. Copper’s prices hold below short & medium term EMA’s showing weakness in the market. MACD is falling in negative zone showing increasing bearish momentum. Oscillators are falling in oversold region warranting caution to the bears. Copper may be volatile during Wednesday’s session.

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