Can we expect Dr Copper to rally more? What is supporting Copper – Generatebucks

Copper and other base metals have been trading in green this week. Last week the entire base metals was trading in red with MCX Copper April contract closing as low as 449.

Entire base metal pack since yesterday was trading in green zone and there seems to be trust in the market despite low numbers from China.

Copper Trend - Generatebucks
After few confused session, Copper prices surged due to supply deficit and economist are positive about growth in Chinese economies.

Major reason of bullish copper prices are supply deficits which directly indicates that there is a huge demand of Copper and production of the red metal is less.

Copper has been shining among the entire base metal pack. Last week Copper prices saw a decline after trade data showed a plunge in Chinese imports. China consumes half the world's copper, and trade data released on Friday showed the country's imports of unwrought copper fell by more than a third in February at 311,000 tonnes from a bumper 479,000 tonnes last month.

It was the lowest monthly total since March 2018. Last year China imported a record 5.3m tonnes of refined copper. Read here 

With movements in trade talks, traders and investors are ready to increase their risk appetite. Buyers are becoming clearer since fundamentals are in favor. With decline in inventories and progress in trade talks, Chinese economy will definitely grow and good numbers are expected later in the year.

Technically, Copper has been following a bearish but couldn’t break its major support at 450. It bounced back

Trading tip – Copper will be seen trading in a range from 450- 470. If Copper futures break the above resistance at 466-470 than we could expect a high of 485 in upcoming weeks.

I would advise creating long positions in Copper around 456 for target of 465 in upcoming sessions. Traders with high risk appetite could extend and expect a target of 470-471.

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