Commodity Trading Tips for Copper by Kedia Commodity

Ajay Kumar Kedia 12 September 2013

Copper Copper settled down -0.51% at 464.85 as rupee rose extending gains for a fifth session, with corporates selling the dollar as rupee continued its recovery. While Copper on LME traded higher as the odds of a US military strike against Syria receded and amid ongoing indications China's economy is strengthening. In an address to the nation late Tuesday, President Obama said that he had asked Congress to postpone a vote on taking military action against Syria. Instead, Obama said that he will explore a plan proposed by Russia for Syria to place its chemical weapons under international control. Indications that the Chinese economy is recovering from a slowdown also aided gains. Data released on Tuesday showed that Chinese retail sales rose unexpectedly in August, while Chinese industrial production increased more-than-forecast last month. The upbeat report added to optimism over China's economic outlook after trade data released over the weekend showed that exports rose more-than-expected in August. Meanwhile, investors continued to speculate over the timing of the Fed's widely expected reduction in monthly bond purchases following last week's weaker-than-forecast US jobs report. Copper traders 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. Worldwide copper prices advanced on Wednesday, as China's economy continues to recover. China is the biggest importer of copper, thus the rise of prices is predictable. According to overall outlooks, Chinese economy can add 7.6% this year, up from previous forecast of 7.5%. Technically market is getting support at 461.6 and below same could see a test of 458.4 level, And resistance is now likely to be seen at
470.1, a move above could see prices testing 475.4.