Fundamental & Technical Outlook for 2nd Week of May on Base Metal

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

Copper prices fell to a two-week low, following the release of disappointing data on China's manufacturing sector and after Federal Reserve decided to taper its monthly bond-buying program by $10 billion for the fourth consecutive meeting. The Asian nation is the world's largest copper consumer, accounting for almost 40% of world consumption last year.

Trend of MCX Copper June future is in consolidation and also sustaining in range. For the coming week, it could face major resistance of 418/430 whereas 400/389 could be a major support in MCX Copper. For the next week trader may follow sell on higher levels strategy, if MCX Copper future sustain below 406 levels then it could test the level of 400/392.

Source : Equity Bulls

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