Trend of MCX Copper November future is in consolidation

Commodity Market Forecast - Mr.Vivek Gupta, Director Research, CapitalVia Global Research Limited

Copper and other base metals slipped on Friday, pressured by renewed weakness in China's property market and by a sharp rise in the dollar after the U.S. Federal Reserve signaled interest rates could rise faster than expected. The U.S. central bank renewed its pledge to keep interest rates near zero for a "considerable time", but also indicated it could raise borrowing costs faster than expected when it starts moving. The outlook for the future interest rate lifted the dollar to a more- than a six- year high against the yen. A rising dollar makes commodities priced in the U.S. Unit more expensive for holders of other currencies. We expect base metal prices to trade mostly on the negative note as higher supplies, weak Chinese economy and strong dollar are likely to keep prices under pressure.

Trend of MCX Copper November future is in consolidation and also sustaining in range. For the coming week, it could face major resistance of 428/442 whereas 392/380 could be a major support in MCX Copper. For the next week trader may follow sell on higher levels strategy, if MCX Copper November future sustain below 414levels then it could test the level of 404/392.

Source : Equity Bulls

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