Copper - Outlook - April 7, 2021 - Reliance Securities
(Time Zone: Arizona, USA)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
LME Copper prices rose on Tuesday amid supply concerns, as leading producer Chile's decision to close its borders amid resurgence in COVID-19 cases. Other metals also rose on Tuesday.
Domestic Copper ended flat, while the rest of the metal prices on MCX ended with solid gains on Tuesday, tracking overseas prices.
Also supporting prices were data that showed recovery in China's services sector speed in March as firms hired more workers and business optimism surged, along with upbeat U.S. services activity.
Meanwhile Reuters reported that Chile's Codelco, the world's biggest copper miner, increased production by 2.1% year-on-year in February to 122,800 tonnes. Overall, however, Chile's February output was down 5% to 430,100 tonnes.
Stockpiles of the metal in exchange warehouses have been rising steadily and kept upside capped.
LME Copper prices and the rest of the base metal complex have started lower this Wednesday morning in Asian trade, awaiting fresh triggers.
Technically, LME Copper is trading above the 21-Daily Moving Average at $8956 and could see a bullish momentum up to $9020-$9130 levels.
Technically, LME Nickel could trade in a range of $16450-$16850.
Domestic copper and rest of the base metal complex could open flat to lower this Wednesday morning, tracking overseas prices.
Technically, MCX Copper April resistances are at 690 and 693. Supports are at 685 and 683.
Technically, MCX Nickel April supports are at 1135 and 1120. Resistances are at 1255 and 1268.
MCXMETLDEX could trade in a range of 14150-14350 levels.
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