On Friday copper was trading in green since there were positive
signs of negotiations between US-China trade war. Copper and other base metals
started this year with a positive note but seems to lose their shine this week.#online day trading
Yesterday morning base metals on LME were trading low following
the poor economic data from China at the time when global trade uncertainty continues
to dampen risk.#
Among all the base metals, Zinc was seen suffering the most.
Copper was seen trading around 1% down on MCX.#
Traders see uncertainty in the market and so we saw base
metals trading sideways to lower yesterday.#
Looking at individual base metals
Copper
At LME Copper is still trading below its 20 day moving
average. This indicates the sellers prevailing and dominating the market.
A
close above the 20 day moving average could indicate presence of buyers and
allow copper to break its resistance.
Looking at long-term, Copper is uptrend and next resistance could
easily become next support. Uptrend of copper comes from the pause in Fed’s
rates and US- China trade developments. While dollar is edging down, the appetite
of emerging countries expands.
Due to growing risks to Chinese economic growth, China could
implement more easing measures this year, which should be copper-positive.#
There is a deficit in supply of copper and this could be one
of the primary reasons of Copper’s uptrend behavior. Currently demand of
copper is not much but is expected to increase latter half of the year.
Trade in Copper – I suggest a positional trader to enter the
market around 410-415 for a one month target of 440 with stop loss of 390. You
might have to hold on to your position for additional 15 days.
Intraday – Buy Copper at 415 for target of 420 with stop
loss of 411.#
Lead
Lead prices could be seen trading in green today but upside
in limited. I would suggest a buy in lead at around 140 for target of 142 with
stop loss of 139.
Zinc
Zinc prices will be seen trading sideways today. I suggest
to buy Zinc at 176 for target of 177.50 with stop loss 174.
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