Copper - Feb 4, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

LME copper ended in the red on Thursday tracking gains of the U.S. Dollar.

Copper gave up gains on Thursday, tracking weak overseas prices.

The dollar rose for a fifth straight daily gain on Thursday and weighed on prices.

Downside remained capped amid expectations of further stimulus from the United States.

Strong data from the U.S. is pointing to signs of a recovery in the world's biggest economy and kept downside limited.

LME Copper and other metals prices have started higher this Friday morning in Asian trade amid hopes of a quick recovery from the pandemic.

However, a stronger dollar could cap gains. Markets will await the nonfarm payrolls data tonight.

Technically, LME Copper is holding well above 50-Daily Moving Average at $7830 levels from where it has given a bounce back & is trading near $7850 level. However it has a resistance at $7890-7950 levels which could indicate a sideways momentum in the counter.

Domestic copper could open higher this Friday morning, tracking overseas prices.

Technically, MCX Copper February is trading on flat note where 593 holds immediate support & 600-604 is a resistance.

MCXMETLDEX February could see Bullish momentum where it could trade in a range of 13300-13500 levels.

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Source : Equity Bulls

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