AUG 13 WEDNESDAY

SHORT TERM TREND : BEARISH : TARGET RS 295

LONG TERM TREND : BULLISH : TARGET RS 405

S1 RS 301, S2 RS 298, S3 RS 295

R1 RS 306.50, R2 RS 309, R3 RS 311.60

PREFER SHORT AT RS 306 TO 306.50

STOP LOSS RS 309.60

TARGET RS 301

US copper ends down sharply as dollar rise resumes.

U.S. copper futures closed with steep losses dating back

six-months on Tuesday when the dollar reversed course

and eked out gains on the euro and a drop in crude oil

prices added to concerns about faltering economic growth,

traders said.

Copper for September delivery dropped 6.40 cents to $322.75 per

lb by the close of the New York Mercantile Exchange's

COMEX division.

A dollar rally, that reversed early declines against the euro

added sudden pressure to copper prices that had begun

paring losses when the dollar fell earlier.

The dollar edged higher against the euro when crude oil prices

headed down on worries about contracting demand.

U.S. crude oil prices were down 1.26 percent at the close on

Tuesday, buffeted by concerns about a slowing economy and

slumping demand after a report showed U.S. first half year

oil demand at its slowest in 26 years.

Recent builds in copper inventories and concern about the

global growth outlook also weighed on prices.

COMEX August copper finished 12.40 cents, or 3.69 percent,

lower at $3.2350 a lb.

Backwardations on both COMEX and LME were unwinding.

Analysts noted that backwardated prices tend to reflect

market tightness, and the latest unwinding pattern

suggested more normal metal demand conditions.

Copper charts still show primarily bearish signals, with some

analysts looking for a retest of $3.00 a lb.

COMEX copper stocks were drawn down by 126 short tons to

5,563 short tons on Monday

London Metal Exchange warehouse stocks were up by a paltry

75 tonnes at 151,700 tonnes on Tuesday.

LME copper for delivery in three-months slid to $7,150 a tonne by

the kerb close, down from $7,330 per tonne on Monday.

It dropped to a fresh six-month low at $7,130 a tonne.