Commodity Radar: MCX Copper Contracts Bid on DIPS option Despite a weak card structure. This is why

The copper prices fell higher on Tuesday, with September MCX contracts with 0.6% to reach the day of RS 902.85 per kg. Despite a decrease in prizes in the international markets, the domestic prizes rose due to the weakness in Repoie, which has reached new lows against the US dollar.

Dollar-made raw materials have a reverse relationship with the movement of the Greenback and the rates fall on the USD increase. Although the raw material prices fell in dollars, the weakness of the rupid supported the prices on the MCX.

The copper prices on the Comex fell by almost a percentage to $ 4,4975 when the dollar stuck. On the London Metal Exchange (LME), the three -month fare contracts fell by 0.2% to $ 9,884 per ton.

Ajit Mishra, senior vice president – research at Religare Broking Mixed Trends in two world’s greatest economies – US and China emphasized on the general trends.

“In the US, revised government data showed that the economy expanded at a pace of 3.3% in Q2, stronger than the previously reported growth of 3%. The revision was driven by a pick -up in company investments, which rose 5.7%, alongside resilient consumer spending and support for trade, said Mishra.

In the meantime, the industrial profit fell at a slower pace in July in July than in June, which means that the efforts of the government to curb overcapacity and stabilize production can come into effect, he said. A degree of profit decreases can support the current demand for industrial metals, including copper, Mishra added.

Copper forecast: Technical view

MCX Koper is currently trading near RS 898 after repairing a sharp correction between RS 917 and RS 789. The price is now above 20 and 50-day progressive averages, which indicates a bullish momentum in the short term, while the 200-day MA acts as strong support. A breakout above RS 900 – RS 905 could further activate upside down to RS 915 – RS 927, supported by the Elliott golf structure that suggests a potential Golf 5 -Rally. However, momentum indicators such as ADX and MACD remain weak, which signals the upward trend, lacks conviction.

Copper Daily Chart

Trade strategy

Mishra recommends traders to adopt a buy-on-dips strategy near RS 889-RS 892 with a stop loss under RS ​​878, aimed at RS 915 levels.

Also read: Commodity Radar: Gold transactions in overheated zone. Graphs scream 5 indicators for sales trade

((Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)