AHMEDABAD (Commodity Online): Copper moved up by 1% in the afternoon session on the Multi Commodity Exchange (MCX) prior to the US economic reports that might show stronger industrial production and housing stats in the US, the world’s second- biggest consumer of the metal. Copper opened higher on strong fundamentals taking clues from US equities last evening. Acting on support form Asian equity and lower stocks it made an intraday high of 343.10. But August onwords Copper consumption in China may grow at a slower pace this year as real estate curbs cut demand. China is the largest copper cosumer in the world. Consumption of the metal used in appliances and construction is expected to expand 11 percent to 6.2 million metric tons this year, compared with 14 percent growth last year, Yang Changhua, a senior analyst at Beijing Antaike Information Development Co., said in an interview with Bloomberg. The usage was 5.6 million tons in 2009, he said. Copper opened at 338 and made an intraday low of 337.85. Total volumes for the day is 2356 lots and open interest is around 2753. Support for Copper can be seen at 337and 335. Resistance level could be at 345. Copper increased from 335 to 342 in last 2 days. 14 days RSI for Copper is at 63 and the main reason for a price hike is lower stock. Copper inventories declined today by 1,675 tonnes to reach 405,025 tonnes . “Technically, one can long Copper at 339 with a stop loss of 337 for target of 345,” said Hardik Shah, Sr. Commodity Analyst with Commodity Online. “Fundamentally, Copper is strong. One can make a long position at 300 levels for long term,” said Shah. To get in touch with the Analyst on this report or to get a free trial on trading advisories call 079-40275050 or mail to tips@commodityonline.com

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