Commodity Trading Tips for Copper by Kedia Commodity

Copper on MCX settled up 2.04% at 406.10 rallied on fresh buying as support seen from weakening of dollar and concerns about potential supply disruptions in Chile. Workers at the Escondida copper mine in Chile, the world's largest, entered the final stretch of voting on a wage offer, with the union saying it was confident a strike would be approved. Meanwhile Indonesia had temporarily exempt the local unit of Freeport-McMoRan Inc from some new rules while processing its application for new mining rights, a ministry official said, potentially allowing for the resumption of copper concentrate exports. In lighter than usual trading because of the week-long Chinese Lunar New Year holiday, three-month copper on the London Metal Exchange closed at $5,989 a tonne, having hit a two-month peak of $5,991. Meanwhile, the dollar sank back toward and eight-week low against a basket of major currencies after Peter Navarro, Trump’s top trade adviser, accused Germany of currency exploitation. The U.S. dollar index fell 0.82% to 99.60. Now traders were now looking ahead to the Federal Reserve's two-day meeting on monetary policy starting on Tuesday for further clues on the timing of the next U.S. interest rate hike. CB consumer confidence fell more than expected in January to 111.8, lower than the expected 113. Technically market is under fresh buying as market has witnessed gain in open interest by 15.27% to settled at 18523 while prices up 8.1 rupees, now Copper is getting support at 400.6 and below same could see a test of 395.1 level, And resistance is now likely to be seen at 409.3, a move above could see prices testing 412.5.

Trading Ideas:

Copper trading range for the day is 395.1-412.5.

Copper rebounded on fresh buying as support seen from weak dollar and concerns about potential supply disruptions in Chile.

Workers at the Escondida copper mine in Chile, entered the final stretch of voting on a wage offer.

Indonesia will temporarily exempt the local unit of Freeport-McMoRan Inc from some new rules while processing its application for new mining rights.