Base metal prices have stabilized after heavy sell off on stronger US dollar, however copper in particular showed two ways interest build up as some participants view a buying on dips opportunity. Yesterday night, prices recovered from their weekly low on lower level buying amid slight weakness in dollar spurred sentiments. On MCX, copper prices returned from 335 levels as prices getting strong support at 335 level. While nickel prices today showed smart recovery and trading with 1% gain. Nickel has strong support at 890 level.
Copper stockpiles in Shanghai expanded by the most in four months. Inventories of copper gained for a second week by 7,502 metric tons, or 7.1 percent, to 113,870 tons, based on a survey of six warehouses in Shanghai, which is the largest increase since the week ending April 15.
Euro zone gross domestic product grew at its fastest pace in more than three years in the second quarter, boosted by a strong performance by Germany and France, but concerns remain that the rebound could falter. European Union statistics agency Eurostat said GDP in the 16-nation currency zone expanded by 1.0 percent in the second quarter from the first, and by 1.7 percent versus the second quarter of 2009.
Technical View
MCX Copper (Aug) has strong support at `335 with resistance at `340
Nickel has resistance at `1005 with support at `1022
