United States manufacturing data fuelled demand expectations from the world's biggest economy amid demand woes from China after preliminary reading showed manufacturing activity plunged to its lowest level in seven months. Domestic copper prices fell from two-week high following weak manufacturing data from China. The world's second biggest economy consumes almost 40% of world copper and is a major importer of other base metals. Trend of MCX Copper February future is in consolidation and also sustaining around lower levels. For the coming week, it could face major resistance of 456/470 whereas 428/418 could be a major support in MCX Copper. For the next week trader may follow sell on higher levels strategy, if MCX Copper future sustain below 439 levels then it could test the level of 436.70/428.50.
By Vivek Gupta, Director Research, CapitalVia Global Research Limited
NOTE: The views expressed are those of the author