16 February 2016

MARKET OUTLOOK OF METALS 16 FEB 2016

“BUY COPPER ABOVE 313.70 TGT 315/317 SL 310”
“BUY NICKEL ABOVE 566 TGT 572/585 SL 552”

Base Metals Copper and nickel rose on Monday as hopes for more stimulus measures resurfaced after Chinese traders, returning from a weeklong holiday, digested worse-than-expected trade data. Also helping the metals, oil held on to recent gains, while China's central bank fixed the yuan at a much stronger rate. A stronger yuan reduces the risk that China will export deflation to the world. China's January exports fell for a seventh straight month while imports tumbled for a 15th straight month. Exports declined even though China allowed the yuan to weaken sharply, underlining the weakness in global growth. Outlook We expect base metal prices to trade positive on the back of hopes for more stimulus measures from China.

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