Monday, 16 May 2011
Copper ends higher on firm dollar index
Copper ended positive as weak dollar helped to spurn the negative tone set by other commodities and settle higher despite further credit-tightening measures in China.
The metal shrugged off China's move late Thursday to raise banks' reserve ratio requirement for the fifth time this year, as such a move had been widely anticipated and factored into prices over the past few sessions.
Copper stockpiles at bonded warehouses in Shanghai have fallen from a record since the beginning of May as consumers in the world’s largest user of the metal draw down inventories. Stocks of copper in LME warehouses rose to 468,525 tonnes, nearly 35 percent above levels seen early in December.
For today's session market is looking to take support at 400.8, a break below could see a test of 400 and where as resistance is now likely to be seen at 402.6, a move above could see prices testing 403.6.
Trading Ideas:
Copper trading range is 400-403.6.
Copper ended positive as weak dollar helped to spurn the negative tone set by other commodities
Copper is taking resistance at 403.80 and support is seen at 399.20
Copper weekly stocks at Shanghai exchange came down by 17577 tonnes
Courtesy: Kedia Commodities
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