However, as we proceed, the commodity may eventually remain lower. At least the fall is expected to remain until the mid-European session.
Copper’s 3 month prices at the LME fell sharply by 1.89% to settle the day at $6541. Along similar lines, MCX copper’s April futures also declined and ended the day at Rs 400 while it made an intraday low of Rs 396.20. We could see sharp momentum in copper prices while in the declining trend and, we believe that the price fall could be attributed to the very low economic expansion noticed in the recent past in China. China’s economy grew at 7.40%, its lowest quarterly growth in the recent past.
This morning at the LME, copper is seen trading at $6566, up by $8 from its previous close. We believe that the gains seen today may be temporary and possibly because of higher Asian equities this morning. However, as we proceed, the commodity may eventually remain lower. At least the fall is expected to remain until the mid-European session. However, once we move to the US session, ahead of key economic data such as housing numbers could bring in a lot of volatility in the prices. Nonetheless, the commodity is expected to remain lower. In fact, the commodity has breached its medium term moving average, suggesting that the trend is down. Therefore, we recommend selling copper for the day.