Technically Copper market is under long liquidation as market has witnessed drop in open interest by 1.12% to settled at 12999 while prices down 1 rupees.
Now MCX Copper is getting support at 426.4 and below same could see a test of 424 levels and resistance is now likely to be seen at 432.8, a move above could see prices testing 436.8.
Copper on MCX settled down -0.23% at 428.75 tracking weakness from LME Copper which edged lower pulling back from a two-week high reached in the prior session, as investors exercised caution ahead of possible trade talks between the United States and China to resolve an escalating tariff war.
China will not buckle to U.S. demands in any trade negotiations, the major state-run China Daily newspaper said in an editorial on Friday, after Chinese officials welcomed an invitation from Washington for a new round of talks.
Meanwhile China and the United States are set to return to the table with the threat of new U.S. tariffs looming after Treasury Secretary Steven Mnuchin extended the invitation to counterparts in Beijing. The official China Daily said that while China was “serious” about resolving the stand-off through talks, it would not be rolled over, despite concerns over a slowing economy and a falling stock market at home.
The dollar sagged after weaker-than-expected U.S. inflation data further burdened a currency already weighed down by signs of reduced trade tensions between the US and China.
For today market participants should monitor data such as the US retail sales for August, the University of Michigan consumer confidence index for September, and China’s total retail sales of consumer goods last month.
--Copper trading range for the day is 424-436.8.
--Copper dropped as investors exercised caution ahead of possible trade talks between the United States and China to resolve an escalating tariff war.
--The US and China have so far imposed tariffs on $50 billion of each other's goods in a spat that has left the market fearing demand for industrial metals will weaken.
--China copper premiums have risen to $91 a tonne, the most since February 2016, in a sign of strong underlying demand for physical metal.
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