Commodity Trading Tips for Copper by KediaCommodity

Ajay Kumar Kedia 19 April 2012

Copper Copper yesterday traded with the positive node and settled 0.28% up at 416.2 but stilled looking weak as lingering concerns over the euro zone’s sovereign debt crisis pushed the U.S. dollar higher, while worries over a slowdown in demand from top consumer China further weighed. Wednesday’s turnaround coincided with the dollar index adding to gains against its major counterparts during early European trade, reducing the appeal of dollar-denominated commodities. Markets continued to monitor developments surrounding indebted euro zone members, amid concerns the region’s debt crisis will flare up again. A Spanish short-term govt bonds auction briefly reassured investors as the country raised the full targeted amount of EUR3 billion, although borrowing costs almost doubled. But market sentiment looked set to remain fragile ahead of an auction of two and 10-year Spanish bonds, which is being seen as a key test of market appetite for the country’s debt. Concerns over Portugal’s economic health were renewed after PM said there were "no guarantees" that the country would meet its commitment to return to the international capital markets before Sept 2013. Meanwhile, concerns over a slowdown in Chinese demand for the copper further dampened sentiment. A report released earlier showed China’s home prices falling in a record 37 of 70 cities tracked by the government in March. However, the downbeat data fuelled speculation that Beijing will move to ease monetary policy in the near-term to boost growth in the world’s second largest economy.For today's session market is looking to take support at 414.3, a break below could see a test of 412.3 and where as resistance is now likely to be seen at 418.3, a move above could see prices testing 420.3.