MCX Copper trades weak on inventory data, trade volumes up

Copper prices in India’s Multi Commodities Exchange (MCX) are witnessing a sideway-to-down trend. MCX Copper trade volume was seen rising today on account of weakness in prices. Rise in the Copper inventories has pushed the demand of the commodity downwards. MCX Copper is trading around 435-440 Rs/kg levels. On Tuesday trade, Copper February contract rose to a high of 438.65 Rs/kg and is expected to trade in downtrend in the near term. Support is now seen at Rs 432-433 levels and resistance at 439-441, analysts said. US Copper is trading in a sideways-up phenomenon, rise in Copper inventories and consequent fall in prices has pushed the demand of the metal. Climatic conditions have also reflected the international markets. US Copper is trading around 3.67 $/ton levels on Tuesday. On daily charts, MCX Copper is signaling sideways-down trend, RSI at 41.95 is not bullish at all. The current market prices are way below 20 day SMA which was 444.40 Rs/kg. Expectations of recovery from US and China have stabilized the metal, but the weak demand from China has also reflected the demand of the commodity. Depreciation in Indian Rupee has also reflected the Copper prices.