AHMEDABAD (Commodity Online): Copper declined on MCX on Friday taking cues from the uncertain financial markets. On a weekly basis, copper prices declined after posting strong gains in the earlier weeks.
On a weekly basis, MCX Copper slipped by 2 percent or rupees 7 per kilogram on Saturday to close at Rs 335.05 on last week. Copper inventories declined by 4075 tons in four out of five sessions on the LME warehouse last week.
MCX Copper futures opened at 335.95 rose by 0.67 percent on morning trades. Copper price traded higher at 338.50 with open interest of 33563 and total volume of 35473 lots. Support for contract appears at 335 and strong resistance looks at 340.
“Copper seems to be weak at this moment. This red metal is expected to remain in thin range of 337-340 till it closes below 335 on daily basis,” said Amrita Mashar, analyst with Commodity Online.
Constant poor economic data from the US continued to affect the investor sentiments and the US Federal Reserve also indicated signs of slower economic growth in the second part of this year.
The US Dollar index appreciated sharply nearby 3% in the last week. Inventory distress and low industry demand also affected Copper price to trade lower in last week.
One can take short position roughly around 340 for target near 334 and even lower below till 330 in near term.
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