Copper prices edged higher to Rs 685.05 per kg on April 5 as participants increased their long positions as seen by the open interest. The base metal extended gain in the evening session after a gap-up open tracking positive global trend.
The non-ferrous metal has been trading higher than 5, 20, 50, 100 and 200 days' moving averages on the daily chart. The Relative Strength Index (RSI) is at 56.72, which indicates bullish momentum in prices.
The price is trading firm on concern over limited supplies of refined copper after data showed a fall in global smelting activity owing to a shortage of feedstock. Supply conditions of copper are the tightest in years in many areas of the key physical market.
According to reports many suppliers are considering cutting output as refining margins have slumped to 2012 lows.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited, said, “MCX April Copper has rallied more than 1.5 percent since the previous close. After trading in a bearish channel for the past four weeks, prices gave a breakout on the upside and may test Rs 684-686 levels in the upcoming sessions. On the downside, support is at Rs 665-662 levels.”
The US dollar was marginally lower at 92.81, down 0.26 percent in the evening session against the rival currencies.
MCX METLDEX increased 143 points, or 1.03 percent, at 14,021 at 19:07. The index tracks the real-time performance of key base metals.
In the futures market, copper for April delivery touched an intraday high of Rs 688.80 and a low of Rs 670 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 657.85 and a high of Rs 732.70.
Copper delivery for April surged Rs 15.65, or 2.34 percent, to Rs 685.05 per kg at 19:08 hours with a business turnover of 3,768 lots. The same for May contract gained Rs 14.60, or 2.18 percent to Rs 684.50 per kg with a turnover of 159 lots.
The value of April and May’s contracts traded so far is Rs 1,347.51 crore and Rs 33.78 crore, respectively.
MCX Copper will trade in a higher range for the session with support placed at Rs 678 whereas resistance is at 686-688.50, said Motilal Oswal. The brokerage firm advised its clients to buy, but bias will negate below the support.
At 1341 (GMT), the red metal price on COMEX was up 2.98 percent, quoting at $4.10/pound in New York.
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