Weekly Outlook on Copper - 21 Apr 2023

Sachin Gupta Sachin Gupta

Last Updated: 21st April 2023 - 04:17 pm

Listen icon

Copper prices declined almost 2% over a week after touching their highest in nearly two weeks due to a resurgent dollar and worries of further rate hikes. Federal Reserve Bank of New York President John Williams said that inflation is still at problematic levels and the U.S. central bank will act to lower it. An uneven recovery in China is weighting on sentiments in the copper market as demand will take time to pick up due to scarring Covid-19 effect. The Yangshan copper premium, which indicates the demand for imported copper into top consumer China, was at $27.50 a tonne on Wednesday, down 45% from nearly five weeks ago, SMM data on Refinitiv Eikon showed.
 

                                                                                                     Copper prices plunged lower on rate hike fear

Copper - Weekly Report

 

On the LME front, the copper prices retreated from 9090 levels and tested the prior support around 8800 mark. On the daily chart, it has been forming like Doji candlestick, which suggests indecisiveness among the traders. On the downside, it is holding support at 8750 and 8680 levels, while resistance is likely to be seen at 9100 and 9170 levels. 

 

 

Technically, copper prices failed to cross the resistance zone at 800 levels and went lower for a week, slipping 4% from the weekly high of Rs. 797.50. The price has formed a Bearish Engulfing candlestick pattern on a weekly time frame and also took a resistance at Upper Bollinger Band formation, which indicates bearish sentiments for the near term. A momentum indicator RSI showed negative crossover on a weekly as well as daily chart. Overall, the prices are trading near to the support territory around 758 levels and below the same correction can be continued till 745 and 738 levels. 

                                    

Important Key Levels:

 

MCX COPPER (Rs.)

LME COPPER ($)

Support 1

758

8750

Support 2

745

8680

Resistance 1

780

9100

Resistance 2

793

9170

How do you rate this article?

Characters remaining (1500)

Disclaimer: Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

Get 100 trades FREE* with the code "FREEPACK"
+91
''
Resend OTP
''
''
Please Enter OTP
''
By proceeding, you agree T&C*
Mobile No. belongs to

Commodities Related Articles

Weekly Outlook on Natural Gas ...

by Sachin Gupta 10th Jun 2024

Weekly Outlook on Gold - 24 Ma...

by Sachin Gupta 27th May 2024

Weekly Outlook on Copper - 17 ...

by Sachin Gupta 17th May 2024

How Long Gold Price Sustain to...

by Tanushree Jaiswal 8th May 2024

Weekly Outlook- Crude Oil

by Sachin Gupta 3rd May 2024

Want to Use 5paisa
Trading App?