Copper Price Update: Will copper find support here?

Copper Price Update: Will copper find support here?

Copper price managed to recover from the weekly base affected in the morning session. Prices were under some pressure as investors awaited more information on plans by Chinese smelters to cut output

Three-month copper HG1! on the London Metal Exchange (LME) was down 0.1% at $8,853.5 a metric ton as of 1705 GMT. It dipped to $8,776 earlier in the session for its lowest since March 13. Comex HG Copper traded at 4.0110, rebounded from the low 3.9675, while MCX copper April future traded at 759.05, found support from 754.05.

LME copper hit an 11-month high of $9,164.50 on March 18 after Chinese smelters announced plans to make collective production cuts, but gave no details on the scale or timing of the cuts.

Smelters will hold another meeting today to discuss maintenance and initiation of maintenance works. to cut loss-making production capacity due to a shortage of copper concentrates, industry sources said.

Aside from uncertainty about mold cuts, a state-run research center said China’s copper production is expected to grow by 3%. this year.

Also dampening enthusiasm among speculators was a strong seasonal build-up of copper inventory in China.

The discount on the LME cash copper contract against the three-month contract remained close to a record high, signalling expectations of rising supply.

Technical Outlook – Copper Price:

Copper made a smart recovery from a weekly low of 754.05 to settle at 759.05, up 0.18%.

 Since March 2024, prices have stabilized above crucial support at 752.50 and resistance at 763.00. Thus, this consolidation can continue unless any party interrupts.

While yesterday’s price action resulted in a long bullish candlestick indicating bullish momentum, the RSI 14 and its 9 SMA also provide a positive crossover. In addition, prices were significantly higher than the short-term moving average. For this reason, an increase in prices is expected. A break above 764.20 will soon take prices to 768-772.00. Investors can take long positions on a dip between 754.50-755, with a stop below 752.50. or wait for a break from 764.20

Happy Trading!!

Commodity Samachar
Learn and Trade with Ease

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