Copper May Witness Gains At 415.95, Resistance At 417.9
CommodityOnline | Jun 03, 2014 08:00AM ET
MUMBAI: Copper settled up 1.25% at 415.95 underpinned by seasonal buying interest in China, but trading volumes were light due to a holiday in China. China’s official manufacturing PMI released over the weekend rose more than expected to 50.8 in May, up for a third consecutive month, which contributed to a rebound in base metals. Meanwhile, the country’s policy makers are expected to appropriately lower the reserve requirement for banks that have extended a certain amount of loans to rural borrowers and smaller companies, the State Council announced after a regular meeting led by Premier Li Keqiang.
A purchasing managers’ index was at 49.4 in May, HSBC Holdings Plc and Markit Economics said in a statement. That compared with 48.1 the previous month and a preliminary reading of 49.7. The official factory PMI released June 1 rose to 50.8 for May. In China, Qingdao port has reportedly suspended shipments of aluminum and copper due to an investigation by authorities, but the news has yet to be confirmed by the government. In the US, Chicago’s manufacturing PMI rose to 65.5 in May, its fresh high since October 2013, while the country’s final manufacturing PMI released by Markit also crept up to 56.4 in the month. US ISM manufacturing PMI advanced to 55.4 during the same period. These encouraging economic reports all pointed to improving manufacturing activity in the US during May. Nonetheless, the country’s building spending growth for April fell to 0.2%, missing the expected 0.6% rise.
Technically market is under fresh buying as market has witnessed gain in open interest by 0.13% to settled at 15215 while prices up 5.15 rupee, now Copper is getting support at 412.8 and below same could see a test of 409.7 level, and resistance is now likely to be seen at 417.9, a move above could see prices testing 419.9.
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