Buy MCX Copper June; target Rs 420: Fortune Financial

Fortune Financial Services has come out with its technical report on Copper. According to the research firm, one can buy MCX Copper June near Rs 408-405 for price target of Rs 420 with a stop loss below Rs 397. Fortune Financial Services' report on Copper -

Fundamental Update

Base metal futures seen trading range bound next week, as release of upbeat China's manufacturing data is likely to support prices, but strengthening of dollar might cap gains. China is world's leading consumer of industrial metals. Also, uncertainty in the market regarding US Fed's likely steps on monetary easing and Eurozone economic condition would restrict sharp movement on either side.

Financial markets rose amid expectations that weaker data would trigger the Fed to continue QE measures. Wall Street gained with the DJIA and the S&P 500 adding -0.14 percent and +0.37 percent respectively. Japanese shares plunged despite BOJ Governor Kuroda’s reaffirmation that the central bank is committed to asset purchases and exert downward pressure on long-term interest rates. The central bank also confirmed that it plans to make JGB purchases of around 7 trillion yen of across 8-10 days in June.

US GDP growth for 1Q13 was revised down to +2.4 percent from the flash reading of +2.55. Initial jobless claims rose to +354K in the week ended May 24 while the prior week was upwardly revised to 344K. The 4-week moving average added +7K to 347K. Continuing claims gained +63K to 2 986K in the week ended May 18 following a -101K decline in the prior week. Pending home sales might have added +0.3 percent m/m in April, following a +1.5 percent gain in March. The market had anticipated a +1.7 percent rise.

MCX Copper June contract has turned positive on chart but expected to remain in range unless trades above strong resistance of 420.4 , while 403 will act like a strong support on chart and bullishness will be over below this level. Immediate trend is range bound between 403-421. Major support is seen near 403, 397 and 388 while immediate resistance is seen near 421, 428 and 436.

Recommendation Buy near Rs 408-405, Target Rs 420, SL below Rs 397

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on http://vogazsahota.blogspot.in are their own, and not that of the website or its management. http://vogazsahota.blogspot.in advises users to check with certified experts before taking any investment decisions.

Source : .Money Control