Monday, 24 June 2013

Copper Goes Down Begging For Mercy From Sellers

LME and MCX prices of Copper have come down begging for some respite as selling pressure mounted after a series of bad data from world markets last week. The rise in ICSG Copper surplus and fall in Chinese imports was already been handled by the markets but the news of money managers sharply increasing their short positions killed all chances of bottom fishing.
After the week ending 11 June 2013 the second week in the row turned out to be in favor of bears. The week ending 18 June 2013 highlighted that the short positions were increased significantly.
COMEX Copper fund managers, Commitment of traders (CoT) report showed heavy rise in short positions while there was minor increase of long positions by hedge fund managers. The total short positions increased by 11209 contracts taking total short contracts number to 55896 contracts against 44687 contracts in the previous week.
CoT report showed that long contracts increased by 914 contracts and were at 26887 contracts from 25973 contracts a week before. Total net short positions therefore moved up by 55 percent to 29009 contracts from 18714 contracts a week before.
LME copper three month prices was trading below $ 6800 per tonne on account of worries on Chinese demand outlook. Most active Copper contract on MCX was trading at Rs 401.2 per kg, down 1.6 percent from last week. Resistance for the contract is at Rs 405 per kg. Downtrend can take copper towards Rs 398 per kg.
Source by Commodity Insights

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