Base Metals - Commodity Snippet - Dec 9, 2020 - Reliance Securities

LME copper prices slipped on Tuesday again on profit-taking and concerns about growing U.S.-China political tensions weighed on sentiment.

However, downside was capped amid strong demand and forecast supply shortages.

The euro zone economy posted a record quarterly rise in the summer and German investor sentiment soared more than expected in December and limited downside.

Plans by U.S. President-elect Joe Biden to spend $2 trillion on infrastructure are expected to underpin metals prices in the coming months as the world's biggest economy moves towards greener policies that are metal-intensive.

Copper on MCX ended lower on Tuesday, while other metals also ended mixed on Tuesday.

International and Domestic Outlook

Copper on the LME has started marginally higher this Wednesday morning in Asian trade supported by stimulus talks.

Technically, LME Copper bounced back and started to trade above $7700 levels indicating sideways to marginal upside momentum where support is at $7670-$7630 levels. Resistance is at $7770-$7790 levels.

Domestic copper could start flat to higher this Wednesday morning, tracking a subdued start in the overseas prices.

Technically, MCX Copper December is trading above 590 levels above which suggests that prices could continue its positive momentum. However it could trade in a range of 587-596 levels in the coming session.

MCXMETLDEX has bounced back from 13440 levels where it ended above 13500 levels indicating sideways to marginal upside momentum in coming sessions.

Source : Equity Bulls

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