MCX Copper Tips and Trend For Today

Copper Updates:

Today London Metal Exchange is closed due to diamond jubilee celebrations while at Comex electronic platform Copper is trading down by 1.2 percent. The Asian equities are also down by more than a percent owing to weak services PMI numbers from China and lower demand for vehicles and durables around the globe. Base metals at Shanghai are also trading down owing to weak domestic demand and deteriorating western development. In today’s session, metals may remain subdued, as the largest metals market would remain closed.

The red metal’s inventories on the LME warehouses increased around 4.4 percent to 230,875 tonnes on 1st June 2012 from the previous level of 223,500 tonnes on 25th May 2012. Weekly copper inventories at warehouses monitored by the Shanghai Futures Exchange decreased sharply by 6.6 percent to 147,044 tonnes last week.

The base metals pack is expected to trade on a range bound note today as the LME is closed today and tomorrow on account of Spring & Diamond Jubilee holiday. In the domestic markets, sharp downfall in prices will cushioned on account of depreciation in Indian Rupee.

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MCX Copper Updates (Tips and Trend) For Today

Copper News

Copper, was the worst performing commodity in the base metals pack yesterday as it declined around 1 percent on the LME. The metal came under pressure on the back of slow GDP growth in the US. Additionally, LME copper inventories rose by 1.6 percent and stood at 230,675 tonnes. A stronger dollar index too exerted downside pressure on the red metal. Copper traders are the most bearish since September and hedge funds are betting on price declines as concern that Europe’s debt crisis is deepening drove the metal to the lowest this year. The metal slid the most since September in May as concern about Greece’s future in the euro and spreading of the region’s crisis grew.

MCX Copper Trend

From an intra-day perspective we expect base metals to trade with a negative bias today on the back of rise in risk aversion in the global markets. Additionally, latest data from China showed a fall in the manufacturing PMI, indicating a slowdown in the Chinese economy which is the major consumer of base metals. This news will act as a bearish factor for base metals today.

Technically chart of Copper suggest that prices have breached the bottom to bottom rising trend line. RSI is in a sell mode. We expect prices to correct up to levels of 413.

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