Commodity Trading Tips for Copper by Kedia Commodity

CopperCopper settled down -0.72% at 457.95 lower as investors and speculators stayed cautious over booking fresh positions in copper after a dip in investor confidence in Germany in January signaled a cautious outlook over the 17-member Euro area economy clouding the demand prospects for the base metal. The gauge measuring investor sentiment in Germany fell to 61.7 this month from 62 in December ZEW said. Traders looked ahead to key Chinese economic data to gauge the strength of the world's second largest economy and biggest consumer of the industrial metal. The next slice of Chinese economic data to come out will be the HSBC preliminary purchasing managers' index for January, due on Thursday. Copper traders consider shifts in the HSBC PMI an indicator of China's copper demand, as the industrial metal is widely used by the sector. Data released earlier in the week showed that China's economy expanded at an annual rate of 7.7% in the fourth quarter, down from 7.8% in the three months to September. A separate report showed that industrial production in China rose by an annualized rate of 9.7% in December, compared to expectations for a 9.8% increase, after a 10% gain in the previous month. Technically market is under long liquidation as market has witnessed drop in open interest by -3.01% to settled at 10663 while prices down -3.3 rupee, now Copper is getting support at 455.9 and below same could see a test of 453.9 level, And resistance is now likely to be seen at 460.7, a move above could see prices testing 463.5.

Trading Ideas:

Copper trading range for the day is 453.9-463.5.

Copper dropped as traders looked ahead to key Chinese economic data to gauge the strength of the world's second largest economy.

Surplus stocks of copper will tighten significantly this year and next as new mine output fails to translate into refined metal

Production of refined copper in China dropped last month from November's record, according to the nation's statistics bureau.