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Copper May Trade Mixed, Selling Recommended

ByCommodityOnline
Published 05/08/2014, 06:21 AM
Updated 05/14/2017, 06:45 AM

Copper prices at LME, SHFE and COMEX declined on Wednesday. Three month forward LME copper prices declined to $6655 down by $65 from its previous close. We saw most part of the selling was witnessed during the European session after factory orders data unexpectedly declined in Germany. Copper also fell after the Organization for Economic Cooperation and Development cut its forecast for global economic growth this year as expansion in China and emerging markets slow. Also, orders to remove copper from warehouses tracked by the LME dropped 7.7 percent to 102,750 tons, the biggest decline since May 2013.



This morning copper is seen trading at $6670 almost steady from its previous close. We believe the gain that is being noticed today in LME could be temporary due to rise in the Asian stocks along with better than expected Chinese trade balance number. However, as the day progresses possibly the commodity may remain under pressure while we suggest selling from higher. Nonetheless, the commodity may be highly volatile ahead of BOE and ECB interest rate decision where in euro currency may remain volatile. Also, during the US session especially when the jobless numbers are released we shall see good amount of volatility in most of the asset prices by which copper may also trade mixed. So, for the day we suggest selling for a minimal price target with strict stop loss.

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