There has been a rise in aluminum and copper.
In times of global uncertainty, investors usually run towards gold and silver, but this time the market story seems a little different. While gold and silver are not performing as expected, base metals like copper and aluminum have suddenly grabbed the market headlines. The rise in these metals has given a new opportunity to investors and the interest of traders has also increased rapidly.
Ajay Kedia, MD of Kedia Advisory, told TV9, “In the last one month, copper prices have risen by about 9%, while aluminum has also strengthened by about 7.5%. This rise shows that the focus of the market is gradually shifting from safe investments to industrial metals.”
How will the strategy be?
Ajay Kedia believes that there may be fluctuations in demand due to geo-political tensions, but supply-related concerns are currently strengthening the market. In such a situation, the trend may remain bullish. Investors and traders are advised not to take hasty decisions and make their strategy keeping in mind the support-resistance level, so that they can earn better profits in this bullish market.
Why did aluminum and copper rise?
The biggest reason behind this rise is China’s decision, which has banned the export of sulfuric acid. Since this chemical is very important for copper production. Therefore, this decision has affected the global supply and pushed the prices up. Apart from this, the ongoing tension in the Middle East has also posed a threat to the supply of aluminum, because this region’s share in global production is about 9% and it may take a long time for the situation to become normal. At the same time, weakness in the dollar index has also strengthened these metals, making them more attractive for foreign buyers.
How far will copper go?
If we talk about copper, it is currently trading around Rs 1280 on MCX. 6.6% increase in copper ore imports in China and increasing demand from fabricators can further support its price. On the downside, 1240 and 1210 are considered to be its strong support levels, while on the upside, 1310 is an important resistance. If this level is broken with strong volumes, prices can go up to 1345.
Strong support for aluminum
Talking about aluminium, it is currently around 368 and due to the supply crisis, its fundamentals appear strong. In this, the levels of 361 and 354 are being seen as support, whereas if it remains above 372, it can show a rise up to 385.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsh advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
