AUG 20 WEDNESDAY



SHORT TERM TREND : BULLISH



LONG TERM TREND : BEARISH



S1 RS 326.60 , S2 RS 323



R1 RS 332.60 , R2 RS 336



BUY AT 327 TO 326.60



STOP LOSS RS 323



TARGET RS 332.

US copper ends at 2-week peak in dollar-led rally.

U.S. copper futures settled at a two-week high

Tuesday in a short-covering rally sparked by a

negative reversal in the dollar and strong

technical momentum, traders said

Copper for September delivery ended up 11.35 cents, or

3.4 percent, at $3.4285 per lb on the New York

Mercantile Exchange's COMEX division, its

highest level on a closing basis since Aug. 4.

Technical momentum provided further upside

to the rally, with buy-stop orders triggered

through the $3.40 level - traders.

Copper swept up in a broad-based commodity rally stemming

from the negative reversal in the U.S. dollar.

The dollar surrendered early gains against the euro as

investors took advantage of weakness in U.S. stocks to

further taker profits on the greenback's recent rally.

Disappointing U.S. economic data added to the overall

negative tone on Wall Street and in the dollar.

The U.S. Labor Department's Producer Price Index, which

measures prices at the factory door, climbed 1.2 percent in

July over the prior month, after a 1.8 percent gain in June.

So-called core producer prices, which exclude food and energy,

jumped 0.7 percent in July after a 0.2 percent June increase.

London Metal Exchange copper warehouse stocks increased by

1,575 tonnes to 156,150 tonnes on Tuesday. London stockpiles

have risen by more than 25 percent since early July and now

stand at their highest level since February.

COMEX copper stocks were down 156 short tons at

5,407 short tons on Monday.

LME copper for delivery in three-months closed up $220, or

3 percent, at $7,575 a tonne.