Copper Future expect to consolidate ahead China CPI and UK GDP data.
MCX Copper has witnessed a smart recovery from the start of the week. Current trading at 777.60 as compared to previous day’s close of 775.75. Copper supported following somewhat mixed signals on monetary policy from the Federal Reserve, while copper prices firmed after a strong rally as markets bet on a demand recovery in major importer China.
Among industrial metals, red metal prices steadied after a sharp jump on Tuesday, as renewed optimism over an economic recovery in China, the world’s largest red metal importer weighed on entire market sentiment.
High-grade copper futures rose slightly to $4.0708 a pound after jumping nearly 1.10% in the previous session, also stalled a four-day losing streak.
Technical View
Copper Future rebounded from the low of 764 and trading at 777.05 levels. However, it is still trading below its immediate resistance 782. Formation of doji candlestick on the chart indicates indecisiveness in the near future. Hence, it is expected that Copper Future could be consolidated in between the range of 765-782, unless either side breaks.
On upside, a break above 782 will open the door for next resistance 788-795.
Alternatively, it expects to retreat towards immediate support 770-765 again.
Further, China CPI, UK GDP data are due to be released on Friday. Both data are expected to have a significant impact on base metals prices. Thereby a big move is expected to come on the weekend.