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-- Posted Tuesday, 24 July 2007 | Digg This Article

COPPER SEPTEMBER  TECHNICAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
$345.60	$350.60	$355.70	$362.00	$374.60	$380.50	$386.80	$391.80
GENERAL MARKET CONDITIONS
Nickel was the worst performer among the metals yesterday as it fell five percent after a sharp rise LME inventory. Nickel LME stocks rose by 492 tonnes to 11,346 tonnes, which is the highest since June 2006. Chinese imports of pig iron ore jumped by 6% to 442,000 tons in the first six months of 2007, according to customs data. This only suggests that nickel pig-iron production, a lower nickel content version of stainless steel, has continued at full steam. Nickel has generally seen a cyclical contraction in demand between June to August, which is happening at the moment. This is a temporary phase of decline for nickel and that from September nickel will rise. In India, according to our estimates, there are still huge long positions in MCX nickel by investors and that they have been averaging at lower levels.   Copper was fell on profit taking by investors who had excess exposure in the copper. China's copper imports, the largest in the world, fell 6.80% in June from May as rising prices reduced the profitability of shipments. Overall refined copper and alloy imports were 113,074 metric tons last month compared with 121,383 tons in May. Compared with the previous year, imports rose 62 percent from last June's 69,715 tons. Imports more than doubled to 923,603 tons in the first six months of this year from a year earlier. Until and unless Chinese economy slows down, copper along with molybedenum will not fall significantly. Base metals in general have a ten to fifteen percent speculative interest which can affect intra day prices.   Natural gas, the downside side remains limited as it continues to fall. It seems one Amaranth has dented investor confidence. Investors and fund manager are reluctant to invest. It should bottom out soon. But until and unless there are a one to two weeks of successive gains, it will not be able to attract huge investments. It would rather invest in a rising market, than in a falling market.   Precious metals are holding on to their key technical supports and as long they hold the bullishness will remain. The US dollar is still weaker against the major currencies while crude oil is off the previous weeks highs after Opec said yesterday that higher crude oil prices could affect global growth.
COPPER -- SEPTEMBER
As long as copper holds $360 there is every possibility of $400.0. Initial resistance is at $374.50 and $380.80. Consolidated fall below $360 will result in $350.60.
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-- Posted Tuesday, 24 July 2007 | Digg This Article

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