The Copper futures have been over-stressed a bit in last few days as labor deal negotiations in Chile, the worlds top copper producer, continue to play a key role in shaping up the sentiments in an otherwise jittery global environment. The equities have been under pressure on continued trade concerns between US and China.
Already sliding down from monthly tops in domestic markets, a double bottom formation is in the making for MCX Copper. Breaking below Rs 445 per kg on closing basis would be disastrous for Copper with prices expected to fall towards Rs 420 per kg in short to medium term. On LME, from top of $ 7312 per tonne in mid June 2018, Copper have dropped to $ 6715 per tonne. Further weakness in the red metal cannot be ruled out.
In a major turn of events, Emerging copper developer Hot Chili is scaling up its prospectivity in Chile, starting drilling at two new projects that have seen little exploration in 50 years, just 20km from its large-scale Productora copper project. First drilling has just got underway at your El Fuego copper project (90% option), starting with the San Antonio then Valentina mining areas.