Commodity Trading Tips for Copper by Kedia Commodity

Ajay Kumar Kedia 16 August 2013

Copper Copper settled up 0.39% at 451.20 on Wednesday while markets where closed on Thursday on account of Independence Day's holiday. Copper futures edged lower on LME on Thursday, as a round of profit taking set in after prices rose to the highest level in nearly three-months on Wednesday. Copper traders now looked ahead to the release of a series of US economic data later in the trading day amid ongoing uncertainty over the timing of the Federal Reserve's widely expected reduction in monthly bond purchases. Copper's gains on Wednesday came amid growing optimism over the strength of the global economy. Data showed that the euro zone economy returned to growth in the second quarter, emerging from an 18-month recession. The euro zone economy expanded 0.3% in the three months to June, the fastest quarterly expansion since the first quarter of 2011. Market players now looked ahead to US data on consumer inflation, jobless claims and industrial production, as well as reports on manufacturing activity in New York and Philadelphia. 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 448.7 and below same could see a test of 446.2 level, And resistance is now likely to be seen at 452.7, a move above could see prices testing 454.2.