Commodity Trading Tips for Copper by Kedia Commodity

Ajay Kumar Kedia 27 August 2013

Copper Copper settled down by -0.21% at 473.90 on profit booking while sentiments remain supportive as traders looked ahead to the release of US durable goods data later in the day amid ongoing uncertainty over the timing of the Fed's widely expected reduction in monthly bond purchases. Copper extended gains from Friday, when the Commerce Department said new home sales fell by 13.4% in July, the largest decline in more than three years. The weak data sparked concerns over the strength of the recovery in the housing sector and fuelled speculation over whether the Fed will start to scale back its USD85 billion-a-month asset purchase program in September. The minutes of the Fed's July meeting published last week showed that policymakers remain divided over the timing of a possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate. The minutes described recent US economic data as "mixed", indicating that plans to taper could be pushed back if the economy was to weaken. The central bank is scheduled to meet September 17-18 to review the economy and assess policy. Market players were looking ahead to US data on durable goods orders later in the day. China's state statistics bureau said earlier that the nation's economy is on course to meet the government's annual growth target of 7.5%, with "signs of growth stabilization" becoming "more obvious." China is the world's largest copper consumer, accounting for almost 40% of world consumption last year and manufacturing numbers are often used as indicators for future demand growth. Technically market is getting support at 467.8 and below same could see a test of 461.7 level, And resistance is now likely to be seen at 479.9, a move above could see prices testing 485.9.