COPPER

FUNDAMENTALS

Copper prices recouped as traders booked profits   Friday following crude oil’s record highs and dollars persistent weakness against most of the major currencies. The market some what ignored the heavy losses in stock markets.

Moreover copper smelters are at risk of output cuts due to falling treatment and refining charges. However according to participants China has still not digested its past heavy imports.

LME warehouse copper inventories build by 1200 mt to reach 148,950 mt Friday.

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.

Copper prices may continue weak following hefty increases in LME, SHFE warehouse stocks and renewed credit market concerns.  However the losses may be restricted due to spill over from rise in crude oil prices. Dollars weakness if continue may invite some buying.

TECHNICALS

Candlestick pattern is showing indecision is prevailing at current levels in the market. The prices have closed below short & medium term EMA’s showing weakness. MACD is falling in negative zone showing bearish momentum in the market. Stochastic Oscillator is falling in neutral region indicating weakness though RSI is rising in neutral region indicating firmness. Copper prices may trade volatile with in a narrow price range as international markets are closed.    

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