MTECHTIPS;-Copper expected to decline on profit booking

MTECHTIPS;-Copper expected to decline on profit booking

MTECHTIPS-Copper continued to consolidate within a range after the sharp rally last week and is trading with a negative bias today. Copper prices are expected to decline after it failed to sustain above resistance at Rs.413/kg and is trading at Rs.410.30/kg currently. We expect prices to decline marginally to test support at Rs.408.50-Rs.405.0. The overall trend continues to remain positive but we expect prices to decline marginally led by profit booking today. Traders are also looking forward to the Pending Home Sales Report at 7.30 pm which is expected to come in stronger than expected. Both Nickel and Copper prices have rallied recently after reported strikes at key producing mines which could lead to serious supply deficits if it continues longer than expected. Prices are likely to draw support from the ongoing mine strikes and from the recent ban on copper scrap imports placed by China. On the upside, strong resistance comes at Rs.413-Rs.414 breaking which the rally is expected to resume and test Rs.421-Rs.430 in the short term. We expect downsides to be limited to Rs.405.0 breaking which the current upside is likely to end and the subsequent selling pressure should see prices fall to Rs.400 and possibly lower in the short term

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