Copper May Witness Buying Recommended At Lower Levels
CommodityOnline | May 09, 2014 02:27AM ET
3 month forward copper prices at LME surged to $6729 up by $74 from its previous close. Likewise, at the MCX platform, the June future ended the day at Rs. 409.40 up by Rs. 4 from its previous close. We believe the market dynamics are still suggesting bearish for the metal while a broad based recovery in the entire metal sector pulled the red metal higher. This morning at LME, copper is seen trading at $6712 almost steady from its previous close. At the SHFE front, the copper is also trading higher by more than a per cent despite the Chinese number showed a decline in the PPI and CPI number. We believe falling inflation in China and euro currency trading lower and the USD index managing to move higher has no impact on the copper prices. So, possibly as the day progresses we may see intraday loss in the underlying while by end of the day lower levels buying could be noticed. The technical are also suggesting the commodity to trade marginally higher. Hence, we are recommending buying from lower levels for the day.
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