Copper traded sideways to positive, as reports that China will fast-track infrastructure investments encouraged investors to buy the industrial metal despite a firm dollar and uncertainty about Europe's ability to resolve its debt crisis. Expectations of China acting in order to boost economic growth continued to support base metal prices in yesterday’s trade. Copper, the leader of the base metals pack, swung between gains and losses despite macroeconomic concerns on hopes that the world’s largest copper consumer would re-ignite economic growth in its country, thus reassuring future demand for metals. Copper prices touched an intra-day low of $7,705.75/tonne and at $7,736/tonne in yesterday’s trading session. On the domestic front prices gained by 0.7 percent as depreciation in Indian Rupee helped upside in prices and closed at Rs.429.60/kg after touching an intra-day high of Rs.430.70/kg on Tuesday. Now it is trading at the level of 426.30.
Copper futures for May delivery closed slightly down at $3.487 per pound on the COMEX of the New York Mercantile Exchange. In MCX it holds strong resistance at 430.5. MCX Copper suggest that prices have reversed after taking resistance at 431 levels. RSI is in a sell mode. We expect prices to correct up to levels of 421.
