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Copper May Witness Bullish Trend, Buying Recommended

ByCommodityOnline
Published 04/01/2014, 04:57 AM
Updated 05/14/2017, 06:45 AM



Copper prices at the LME traded in a very lackluster trend and ended the day at $6645, down by $25 from its previous close. Likewise, at the SHFE and the MCX, copper traded in a thin range and settled at 46830 Yuan/MT and Rs 404.15 respectively. We saw a very dull day as there were no major cues in the market while a lot of mixed factors are playing out in the market. This morning, copper prices are seen trading at $638, down by $6 from the previous close. We believe it could be a temporary loss supported by the poor manufacturing data released this morning from China.

The Purchasing Managers’ Index fell to 48 in March, the lowest reading since July, from 48.5 in February, HSBC Holdings Plc and Markit Economics data showed. From the inventory front, stocks at the LME for the past four trading sessions have been declining from 0.270 million tons to 0.265 million tons, which indicates that any further decline in stocks might result in a rise in prices. For the day, we hold a bullish view on the metal, especially when we have the ISM manufacturing number from the US due, which is expected to show little improvement. For the day, we hold a bullish view and recommend buying for a minimal profit target.

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