Posted by : Niti Mathur
Copper declined from a one-month high as China’s money-market rates surged and after U.S. payrolls rose less than forecast, curbing the demand prospect for the metal in the top users. The contract for delivery in three months on the London Metal Exchange fell as much as 1.1 percent, the most since Oct. 9, to $7,249.75 a metric ton and traded at $7,261.75 by 3:13 p.m. in Tokyo. The price lost 8.4 percent this year. It touched $7,350 yesterday, the highest intra-day level since Sept. 20. Technical chart of Copper suggest that prices have reversed after taking support of 450 level. RSI is in a buy mode. We expect prices to go up to levels of 460.
Zinc Trend Today
MCX Zinc had fallen sharply in September. From the high of 136.90, it has reached the medium-term rising trendline. The base metal found support near the trendline, but couldn’t convert it into a significant bounce. Since the last few days, the price is consolidating near the trendline and has formed a bearish wedge pattern. The daily upper Bollinger Bands is acting as a key resistance. Thus the commodity is expected to tumble down from the current level. Unless the swing high of 120 is crossed on a closing basis, the commodity can test the recent low of 113.5.