Bulls can have upper hand in Copper in today's trades - 23 Jan 2017

Commodity Intraday Tips

The prices of Copper remained jostling with rough patch in the week ending 20 Jan 2017 barring last trading day. Last week saw prices dipping below Rs 395 per kg.

However, the metal on the last trading day saw gains of 0.6 percent however the charts suggest that moving past Rs 400 per kg can be a possibility for the metal in today's trades.

Meanwhile, prices looking to further move up due to Chinese economic data released this month. The condition has been such that Copper is getting stuck in a range of Rs 385 to 400 per kg. However, the probability of decline still looks bleak.

China's economic growth picked up in the final quarter of 2016 but its full-year performance was the weakest in three decades as it heads into a potential trade battle with US President-elect Donald Trump.

Trump, who takes office on Friday, has promised to increase duties on Chinese goods, putting pressure on industries that employ millions of workers.

Supported by government spending and a property boom, the world's second-largest economy expanded by 6.8 percent over a year earlier in the three months ending in December, up from the previous quarter's 6.7 percent, government data showed on Friday.

Rio Tinto which has stakes in some of the world's biggest mines, expects to produce between 525,000 and 665,000 tonnes of mined copper this year, compared with actual output of 523,000 tonnes in 2016.

Therefore, the likelihood of actual supplies in World Copper higher than expectations are extreme. This would mean that the pressure from bears can start to build in coming months.

Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
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