Mr. Vivek Gupta - Director Research - CapitalVia Global Research Limited
London copper on Friday remained on track to post small gains for the second month in a row, underpinned by a shortfall in supply that has helped push prices close to their highest since early March. U.S. consumer spending rose less than expected in May, prompting economists to downgrade estimates for second-quarter growth. A warehouse fraud at China's third-largest port has forced banks and trading houses to consider new controls in the country's massive commodity financing business. We expect Copper prices to move in a range to higher for the week as weaker dollar internationally and shortage of physical commodity can support the prices.
Trend of MCX Copper August future is in consolidation and also sustaining in range. For the coming week, it could face major resistance of 432/450 whereas 408/395 could be a major support in MCX Copper. For the next week trader may follow buy on lower levels strategy, if MCX Copper future sustain above 425 levels then it could test the level of 438/440.