Buy MCX Copper Feb Fut on dips: Forutne Financial

Fortune Financial Services has come out with its report on Copper. According to the research firm, one can buy MCX Copper February future on dips near Rs 436-435 with stoploss below Rs 430 for target of Rs 450-463.

Copper futures settled at their lowest level in more than a week on Friday after a report showed the pace of new home sales in the U.S. slowed sharply last month. Sales of new homes in the U.S. fell 7.3% in December from the prior month to a seasonally adjusted annual rate of 369,000. CFTC data show – speculative players reduced both bullish and bearish bets on copper prices. The shift, which was skewed toward the bears, saw the speculative net long increase 1.5% to 16,418 contracts from a week earlier. Weekly inventory report for copper from LME warehouse suggest a decrease of 3025 MT as opening stock on Monday were around 345375 MT and closing stock on Friday were around 342900 MT.

MCX Copper Feb expected to trade higher and looking positive on chart, unless its trades below critical support of 430. Market was trading in range of 436-442 most of the time last week, and waiting for a break out above 445 to confirm further uptrend. Traders are advised to buy on dips.

Recommendation: Buy on dips near 436-435 with stop below 430 for target of 450 and 463.

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