Copper Is Down By $66 And Trading At $6610, Selling Recommended
CommodityOnline | Apr 22, 2014 06:36AM ET
Copper had been one of the major underperformers among base metals in 2014, having declined over 10% and during the past week, it closed near the $6650 / MT mark. It was lower last week as well having declined over $20 from its previous close. Overall, major reason behind fall in past week and recently had been the Chinese economic growth. China released its GDP and industrial production numbers which just managed to stand in-line with estimate though monetary growth number disappointed. By looking at the equity market performance last week Chinese Shanghai equity index declined over 1.50% while rest of the world traded on a positive note.
LME market was closed on Monday while SHFE and COMEX were opened and traded marginally positive. This morning at LME copper is down by $66 and trading at $6610 while in other exchanges too it is trading down. We believe t his metal has been highly influenced to global and China economy performance. So as long as we see any positivity in the metal we continue to remain bearish on copper. For the day we hold a bearish outlook. Looking at the parity- global to domestic we see that the domestic metal copper may open lower hence we are selling the metal on pullback for the day.
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