Copper Outlook - Aug 23, 2021 - Reliance Securities
2021-08-23 08:51:46 (Time Zone: IST)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
LME copper prices rebounded on Friday but remained on track for the largest weekly drop since June due to worries about demand in top consumer China, the possible withdrawal of U.S. central bank stimulus and rising COVID-19 infections.
Domestic copper also recovered on Friday, tracking overseas prices.
Negative factors haven't gone away, but the question in the mind of investors and traders is whether they have been fully priced in or if there is more to go.
China accounts for around half of global consumption of industrial metals. Economic data show growth in the country has been slowing in recent months.
The stronger dollar was also an additional negative on prices.
On positioning, it looks like most longs have been cut or reversed into shorts.
Data from U.S. CFTC showed copper speculators cut their net long in futures and options positions by 12,022 contracts to 19,944 in the week to August 17.
LME copper extended gains this Monday morning in Asian trade.
Technically, LME Copper below $9100 level could see a Bearish momentum in the counter up to $8930-$8800 levels. Resistance is at $9170-$9230 levels.
Domestic copper could this Monday morning with gains, tracking overseas prices.
Technically, MCX Copper August below 700 level could see a Bearish momentum up to 695-688 levels. Resistance is at 704-709 levels.
MCXMETLDEX could see a Bearish momentum where it could trade in a range of 15000-15320 levels.
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