Commodity Trading Tips for Copper by KediaCommodity
Copper settled down -0.48% at 456.45 declined on Monday, after data showed that growth in China continued to slow in the last quarter. The US stock market and Comex were close Monday for Martin Luther King Day, leaving market under the influence of China’s mixed economic data. Deutsche Bank announced an unexpected fourth-quarter loss, largely driving down its stock prices, sending the European stock market down 0.1%. LME copper prices vacillated in a tight range with strong support at USD 7,314/mt, and finally closed down USD 10/mt at USD 7,314/mt. In other news, strike at 14 ports of Chile impeded shipments from the country, driving cash-to-three-month backwardation for LME copper to a high of USD 38/mt, lending strong support to copper prices. China’s GDP for Q4 2013 grew 7.6% YoY, slower than Q3’s pace but exceeding the 7.6% forecast, allowing the country to achieve its 7.5% full-year target. China’s GDP growth hit 7.7% through 2013. Consumption contributed 50% of GDP and investment 54.4%, and contribution from exports was a negative 4.4%. China’s consumer goods sales grew by 13.6% in December 2013 and increased 13.1% for all of 2013. Fixed asset investment in 2013 totaled RMB 4.365 billion, growing at a nominal rate of 19.6%, and with the real growth at 19.2%. The growth rate was 0.3 percentage point lower than just in the first eleven months and was 1.1 percentage points off 2012’s level. Technically market is under long liquidation as market has witnessed drop in open interest by -4.03% to settled at 10777 while prices down -2.2 rupee, now Copper is getting support at 455.2 and below same could see a test of 454 level, And resistance is now likely to be seen at 458.4, a move above could see prices testing 460.4.
Trading Ideas:
Copper trading range for the day is 454-460.4.
Copper declined after data showed that growth in China continued to slow in the last quarter.
China’s GDP for Q4 2013 grew 7.6% YoY, slower than Q3’s pace but exceeding the 7.6% forecast, allowing the country to achieve its 7.5% full-year target
A report showed that industrial production in China rose by an annualized rate of 9.7% in December