Commodity Trading Tips for Copper by KediaCommodity

Ajay Kumar Kedia 2 April 2013

Copper Copper yesterday traded with the negative node and settled -0.54% down at 408.00 for a third day to the lowest level in more than seven months as manufacturing in the US and China, the biggest users, grew less than forecast. Pressure seen after China reported March PMI of 50.9, slightly below market estimates calling for 51.2. Readings above 50 indicate expansion. Still, the March reading is up 50.1 in February. China’s PMI reading has never declined from February to March, but the average increase prior to today had been 3.1 points, according to a research note released by Bank of America earlier today. China’s official PMI data comes courtesy of the country’s National Bureau of Statistics, which surveys 3,000 companies across 21 industries. That compares with the flash reading provided by HSBC, which surveys just 430 Chinese firms. For traders, the China PMI may be viewed as a split decision of sorts. Last week, Cypriot President Nicos Anastasiades agreed to punitive losses for the Bank of Cyprus’s larger depositors in order to land EUR10 billion in aid to keep his country from going bankrupt. Cyprus was forced to agree to the levies against large Bank of Cyrpus depositors after failing to secure financial assistance from Russia. Under the terms of the new plan, Bank of Cyprus depositors will have 37.5% of their deposits above EUR100,000 turned into voting shares in the bank, which would also entitle the depositors to future dividends. Another 22.5% of the deposits will be withheld to ensure the bank is properly capitalized. For today's session market is looking to take support at 405.3, a break below could see a test of 402.6 and where as resistance is now likely to be seen at 410.5, a move above could see prices testing 413.