MCX Copper April Future consolidating at lower levels

Fundamental & Technical Outlook on Commodities

Mr. Vivek Gupta - Director Research - CapitalVia Global Research Limited

Copper prices moved up in London, US and India as optimism of China going for some form of stimulus helped pushing Copper demand bit higher. Positive data from US also helped pushing some demand as optimism grew after revised positive GDP numbers. China's biggest banks showed milder-than-expected signs of financial stress from loan defaults and shrinking profit margins. Investors will now be watching for more detail on global manufacturing health in data due next week. We expect copper prices to move in a range to higher for the week as positive US data and optimism in Chinese economy over stimulus can push the prices higher.

Trend of MCX Copper April future is in consolidation and also sustaining around lower levels. For the coming week, it could face major resistance of 428.85/440.70 whereas 396/387 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 407.70 levels then it could test the level of 414/425.

Source : Equity Bulls

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