Commodity Radar: MCX copper stabilises after 13% spike on Trump's 50% Tariff. Religare says buy for 4% positional gains
Technical view
The Religare analyst has identified XX factors that could impact movement in domestic copper prices:
The recent pullback found support near the trend-following averages (20 and 50 EMA).
The formation of higher highs and higher lows indicates that the broader bullish structure remains intact despite short-term volatility.
However, prices are currently facing mild resistance and have pulled back from the Rs 905 level, suggesting some profit-taking or consolidation.
Copper on charts
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MCX copper prices jumped nearly 13% to hit the day's high of Rs 901.75 in the opening trade on Wednesday tracking prices in the US. President Donald Trump's announcement of a 50% tariff on the copper imported in the US, fired-up the local prices which jumped 10% on Tuesday.The price of July copper contracts stablised within minutes after the opening though traded with an uptick. Around 9:10 am, the copper futures were trading at Rs 895.45 per kg, gaining by Rs 4.95 or 0.6% over the last closing.Though the timing of the tariff implementation is unclear, the US President on Tuesday extended the payment deadline to August 1. It was to end today.Copper prices in the United States jumped more than 10% to a record high above $12,330 per metric ton according to a Reuters report.Commenting on the current action, Ajit Mishra, Senior Vice President - Research at Religare Broking said that the copper prices on the London Metal Exchange and Shanghai Futures Exchange are trading near their highest levels since late March, supported by concerns over tight regional supply and increased shipments to the U.S. as traders move to preempt potential import tariffs.'LME-registered copper inventories remain close to their lowest levels since August 2023, despite a minor rebound over the past two days. Available stocks have plunged by 76% since mid-February, driven by accelerated cargo movements to the U.S. amid an ongoing investigation into copper imports and the threat of new tariffs,' he said.Mishra said that copper prices on the MCX have shown resilience after witnessing a sharp decline from the recent swing high of Rs 917.25 to the low of Rs 789.65.'Post this corrective phase, the metal has staged a steady recovery, respecting the key support of the 200-period moving average, which is acting as a dynamic cushion for prices. The current price action shows copper hovering around Rs 890, slightly above the moving averages,' he said.A sustained move above Rs 900–905 will open the gates for a retest of the previous high near Rs 917, while on the downside Rs 875–880 remains a strong support zone.Traders can adopt a buy-on-dips strategy as long as prices sustain above Rs 875, with positional targets of Rs 917 and Rs 935, suggests Mishra. A strict stop loss should be maintained below Rs 860 to manage risk, he recommended.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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