Commodity Trading Tips for Copper by Kedia Commodity

Ajay Kumar Kedia 14 August 2013

Copper Copper yesterday settled up 0.50% at 449.45 rallied to the highest level amid growing optimism over the strength of the global economy. Copper prices were higher after data showed that German economic sentiment improved to a five-month high in August. Meanwhile, the index of euro zone economic sentiment improved to 44.0 in August, the highest reading since April 2010 and up from 32.8 in July. Economists had expected euro zone economic sentiment to rise to 37.4 this month. A separate report showed that industrial production in the euro zone rose by a seasonally adjusted 0.7% in June, broadly in line with expectations for a 0.8% gain, after falling by 0.2% in May. Europe as a region is third in global demand for the industrial metal. Appetite for the red metal remained supported amid receding concerns over a slowdown in China's economy. China is the world's largest copper consumer, accounting for almost 40% of world consumption last year. Market players now looked ahead to US data on retail sales later in the day, as well as reports on inflation, industrial production, housing starts and consumer confidence later in the week. Investors have closely been looking out for US data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. Any improvement in the US economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months. The Fed's stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar. Technically market is getting support at 446.60 and below same could see a test of 443.70 level, And resistance is now likely to be seen at 451.80, a move above could see prices testing 454.20. COPPER