MCX Copper April Futures to face major resistance at 408/420 levels

Fundamental & Technical Outlook on Commodities - Base metal

Mr. Vivek Gupta - Director Research - CapitalVia Global Research Limited

Copper prices moved in range on Friday as worries over Chinese market and stronger dollar internationally pushed the copper prices down. The global copper market turned into a production surplus of 34,000 tonnes in December, as weak refined usage in major consuming regions offset strong Chinese demand. Poor Existing home sales data by US also pressured the prices further downside. We expect copper prices to move in a range to down for the upcoming week as negative sentiment over Chinese economy and surplus copper in the market can push the prices further down.

Trend of MCX Copper April future is in consolidation and also sustaining around lower levels. For the coming week, it could face major resistance of 408/420 whereas 385/373 could be a major support in MCX Copper. For the next week trader may follow sell on higher levels strategy, if MCX Copper future sustain below 399 levels then it could test the level of 393/385.

Source : Equity Bulls

Keywords