Commodity Trading Tips for Copper by Kedia Commodity

CopperCopper yesterday settled up 0.09% at 411.20 swung between gains and drops as investors weighed a review of state debt in China, against a weaker dollar. The review, ordered by the State Council, underscored dangers to the economy from borrowing by local governments and an expansion of non-traditional sources of credit. Markets were cautious ahead of the release of key US and Chinese economic indicators and Fed policy meeting. The US will announce 2Q GDP on Wednesday and final China manufacturing PMI is due Thursday. LME copper fell along with commodity prices, and closed at USD 6,727/mt, down more than 2%. Despite the plunge in LME copper prices , no massive selloff was reported. European and US major economic data was mixed. LME copper will likely recover earlier losses since markets are not pessimistic over the Fed policy meeting, meanwhile Money managers cut their net-short position, or wagers on lower copper prices, to 12,974 Comex futures and options as of July 23, U. S. CFTC data showed. Meanwhile Rio Tinto Group said it's delaying work on a $5.1 billion underground expansion of its Oyu Tolgoi copper mine pending financing approval by Mongolia's parliament. Rio made its first commercial copper shipment from the mine this month. Also support seen from the copper stockpiles monitored by the LME fell for a ninth session to 618,775 tons, daily exchange figures showed. Now technically market is getting support at 408.90 and below same could see a test of 406.70 level, And resistance is now likely to be seen at 413.50, a move above could see prices testing 415.90.

Trading Ideas:

Copper trading range for the day is 406.7-415.9.

Copper settled firm but pressure seen as expectations of weak manufacturing data from China dimmed prospects for growth in metals demand.

Investor sentiment turned negative on expectations that activity in China's vast manufacturing sector may have contracted in July.

Investors were also cautious ahead of a U. S. Federal Reserve meeting that may provide clues on the timing of a stimulus rollback