Commodity Trading Tips for Copper by KediaCommodity

Ajay Kumar Kedia 23 May 2013

Copper Copper yesterday traded with the positive node and settled 1.72% up at 416.85 as dollar weakened and a production outage at copper mine in Indonesia after a tunnel collapse looked set to continue. Investor risk appetite got an initial boost after Fed Chairman Ben Bernanke said monetary stimulus is helping the U.S. economy recover. Appetite was later tempered as the Fed chairman raised the possibility of reducing the Fed's bond purchases this year if growth improves further. Copper remained in positive territory, however, on comments from Freeport McMoRan Copper and Gold Inc, which said it would not restart production at its Grasberg copper mine in Indonesia after the tunnel collapse that killed 28 workers until it is convinced of the mine's safety. Investors are concerned the accident, one of the country's worst mining disasters, could further strain relations between Freeport and trade unions after a three-month strike in late 2011 and smaller disputes since. Bernanke’s speech last night came under the spotlight. Bernanke explicitly expressed support for QE3 in his testimony, boosting market sentiment and helping US stocks hit a new record high. Nevertheless, during the Q&A session, Bernanke said that the FOMC may scale back asset buying during policy meetings to come and that whether or not to curtail bond purchases depends on how economy evolves. In yesterday's trading session copper has touched the low of 410.5 after opening at 410.5, and finally settled at 416.85. For today's session market is looking to take support at 411.4, a break below could see a test of 406 and where as resistance is now likely to be seen at 421.4, a move above could see prices testing 425.9.