Copper short term view (Comex, LME and MCX): 7th January 2021

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3 weeks ago
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Insignia Consultants

                                                                                   New Delhi

Thursday, January 7, 2021

TIME 11:23 AM IST                       

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Copper short term view (Comex, LME and MCX)

Copper has been rising steadily and seemingly unstoppable in the past seven months. Fourth quarter of last year was coppers best quarter in history. Mine supplies yet to be near normal, higher demand expectation and continuation of inventory deficit are some the reasons why copper prices are flying. Let’s a technical view.

COMEX COPPER MARCH 2021 – current price $366.70       

Support: $338.20 and $351.60

Resistance: $378.40 and $391.90

View:  Copper can rise to $391.90 and $418.70 in the short term as long as it trades over $348-$351 zone. Copper will crash only if $378.40 is not broken in the next two weeks.

MCX Copper 29th January 2021:  (Current price Rs.619.70)

Support: Rs.573.70, Rs.595.80 and Rs.607.50

Resistance: Rs.628.90, Rs.640.10 and Rs.662.20

View:  Copper can rise to Rs.640.10 and Rs.662.20 as long as it trades over Rs.590.60-Rs.595.80 zone. Copper will crash only if Rs.640.10 is not broken by the first week of February.

LME Copper Spot:  (Current price $8088.00)

Support: $7471.50 and $7773.20

Resistance: $8376.50 and $8678.50

View:  Copper can rise to $8376.50 and $8909.10 in the short term as long as it trades over $7610-$7770 zone. Copper will crash only if $8376 is not broken in the short term.

Momentum and all factors are bullish for copper as of now. Demand side fundamentals and supply side fundamentals are all bullish for copper. Copper will crash or move into a short term bearish zone if (a) There is profit taking in long positions and outflows from copper ETF. (b) Global stock markets crash or trade with a falling bias for a few continuous days (c) Demand outlook reduced for the next six months. In the long term corrections upto $6892 will be a part of the bullish trend with$11411.70 as price target.

Investment demand constitutes atleast twenty percent of copper prices. Flip-flop pr changes in copper price will affect copper prices in the next four months.

Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees  have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. All analyses used herein are subjective opinions of the author and should not be considered as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading. Websitewww.insigniaconsultants.in. Prepared by Chintan Karnani

Disclosure: Insignia consultants or it employees do not have any trading positions on the trading strategies mentioned above. Our clients do have positions on the trading strategies mentioned in the above report.

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NOTES TO THE ABOVE REPORT

ALL VIEWS ARE INTRADAY UNLESS OTHERWISE SPECIFIED

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PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS

PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.

THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT

ALL PRICES/QUOTES IN THIS REPORT ARE IN US DOLLAR UNLESS OTHERWISE SPECIFED.

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