Commodity Trading Tips for Copper by Kedia Commodity

CopperCopper yesterday settled flat at 418.15 regained strength on Monday, as investors returned to the market to seek cheap valuations after prices tumbled more than 3% in the previous session. Copper futures plunged 3.3% on Friday after the Department of Labor said the US economy added 195,000 jobs in June, more than the 165,000 increase forecast by economists. May's figure was revised up to 195,000 from a previously reported 175,000. The unemployment rate remained unchanged at 7.6% in June. Fed Chairman Ben Bernanke said last month the bank could begin tapering its USD85 billion-a-month asset purchase program by the end of 2013 and wind it down completely by the middle of 2014 if the economy picks up as the central bank expects. Investors are now looking ahead to Wednesday's minutes of the Federal Reserve's June meeting, for further hints regarding the direction of US monetary policy. The Fed's stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar. Copper traders are also awaiting key data out of top consumer China later in the week. The Asian nation will release reports on consumer prices on Tuesday and trade balance figures on Wednesday. Technically market is under fresh buying as market has witnessed gain in open interest by 0.25% to settled at 22344 while prices up 0.4 rupee, now Copper is getting support at 415.25 and below same could see a test of 412.35 level, And resistance is now likely to be seen at 420.4, a move above could see prices testing 422.65.

Trading Ideas:

Copper trading range for the day is 412.4-422.7.

Copper ended with small gains as dollar retreated from three-year highs but worries over demand prospects maintained downward pressure

Prices also seen under pressure after data pointing to stronger-than-expected growth of the U. S. job market

Chile cuts copper output and price forecasts for 2013