CO:Copper may bearish in the beginning of January 2012
AHMEDABAD ( Commodity Online): MCX Copper February gained more than 1.5% on last Friday trading of 2011, but was on track for its first annual decline in last three years. Euro zone debt crisis and economical slowdown in top metals consumer China hurt demand prospect of industrial metals on MCX.
In MCX, metals prices were down 8% for the year, however, following a 28% increase in 2010 and a 125% jump in 2009, boosted by surging demand from china's manufacturers.
Dollar strength rise in shanghai Copper inventories weak sentiment in the global markets acted as negative factor for the metal. Shanghai Copper inventories increased sharply by 13.30 % to 93219 from a week earlier.
According to Ankush Kumar Jain, Analyst with Commodity Online, technically, MCX Copper February contract major Resistance looks at 416 and good support stays at 390. Copper prices expected to trade in above said range for first week of 2012.
For short term view, Copper prices may trade lower on the MCX, as rising tensions over global economic slow down will create demand concerns for the metals which will also effect the red metal.
In today's session, I expect low volume and lower price movement as all International market closed on account of New Year holiday, added Ankush
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