OUR VIEW ON IMPACT OF POTENTIAL FEARS OF CHINESE CRACKDOWN ON BASE METAL

By: Admin
38851

Our View: Copper prices at 7-week low on Chinese crackdown fears

Tuesday, 15 June 2021

FROM WWW.REUTERS.COM NEWS

HANOI, June 15 (Reuters) - Copper prices dropped on Tuesday to their lowest since April 26, weighed down by investor fears over measures Chinese authorities could take to curb a recent price rally in commodities.

Three-month copper on the London Metal Exchange fell as much as 2.9% to $9,680 a tonne, while the most-traded July copper contract on the Shanghai Futures Exchange hit its lowest since April 23 at 69,500 yuan ($10,852.08) a tonne.

China’s state planner last week renewed its pledge to step up monitoring of commodity prices, as domestic producer inflation hit its highest in more than 12 years.

FULL WWW.REUTERS.COM NEWS LINK BELOW

https://www.reuters.com/article/global-metals/metals-copper-prices-at-7-week-low-on-chinese-crackdown-fears-idUSL2N2NX065

OUR VIEW ON IMPACT OF POTENTIAL FEARS OF CHINESE CRACKDOWN ON BASE METAL

  • In our view investment interest or speculative buys consists of twenty percent of current copper price at $9711.
  • Copper price sell off is just half yearly profit taking aided by short term technical breakdown.
  • Short sellers are also selling on rise since copper price is not able to trade over $10,100.
  • Long term bullishness is intact. Copper is a still an investment on any ten percent or more fall. (I do not expect copper price to $9100. But just in case there is an excessive sell off.)
  • Long term fundamentals are suggest price over $12000 is still possible by Christmas.
  • The pace of rise of copper will reduce till August followed by an equally big rise till Christmas.
  • Technically copper has to trade over fifty day moving average of $9787 till end June to be in a short term bearish.
  • Copper will see another wave of sell off to $9207.20 (one hundred day MA) in case copper price trades below $9787 from 17th June (Thursday. Next trading day after FOMC).

 

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.Website www.insigniaconsultants.in. Prepared by Chintan Karnani. Customer care, whatsapp/telegram 9311139549