Go short on copper with target of 338-340 levels: Amarsingh Deo

In a chat with ET Now, Amarsingh Deo, Head-Commodities & Currencies Research, Aditya Birla Money Limited gives his overview on copper.

ET Now: What is your call on copper?

Amarsingh Deo: We have been bearish on base metals for quite sometime now. We were very clear that the markets are not going to rise substantially higher. This is because the way LME Copper was trading above 8500, it came around 8000 support and that was also breached. So, somewhat reflecting that the physical bias was not very confident of buying in bulk at these prices and also the turn of events in the Eurozone was actually impacting the market.

The sharp appreciation of the dollar against major currencies has also hit these dollar denominated commodities hard. A sell off happening in base metals and therefore one should trade from a short side. At around 350 to 353 levels can be a shorting opportunity with the stop loss above 359, targeting 338-340 levels.