MCX Copper under fresh selling; Support seen at 439.6

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Technically Copper market is under fresh selling as market has witnessed gain in open interest by 3.68% to settled at 5213 while prices down 1.15 rupees.

Now MCX Copper is getting support at 439.6 and below same could see a of 437.8 , and resistance is now likely to be seen at 442.7, a move above could see prices testing 444.

Copper on MCX settled down 0.26% at 441.25 as investors eyed forecasts for slower growth in China, with vehicle sales potentially falling in 2019, expecting economic growth to weaken to a near 30-year low of 6.2% this year.

However, downside seen limited as the U.S. dollar eased on hopes of rate cuts, following dovish comments by the Chairman Jerome Powell. Powell confirmed that the U.S. economy is still under threat, stressing that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. outlook.

China’s import quotas for Category Six copper scrap for the third quarter, on metal content basis, will generally offset the supply shortfall caused by the import ban on Category Seven materials, compared with the same period of 2018, as the grade of copper scrap imports climbs.

China’s environment ministry on Wednesday 10 granted 124,450 of quotas for imports high-grade scrap copper, or Category Six copper, which is being restricted from July 1. This was the second batch of approval after the restrictions.

The quotas obtained by Chinese copper scrap importers so far accounted for some 30% of their total imports of Category Six materials in 2018. Most companies even received a greater approved volume than the actual imports in the third quarter of 2018.

Trading Ideas:
–Copper trading range for the day is 437.8-444.
–Copper dropped as investors eyed forecasts for slower growth in China, with vehicle sales potentially falling in 2019.
–Powell confirmed that the U.S. economy is still under threat, stressing that uncertainties around trade tensions continue to weigh on the U.S. outlook.
–China’s import quotas for Category Six copper scrap for the third quarter, will generally offset the supply shortfall caused by the import ban on Category Seven materials.

Courtesy: Kedia Commodities

Source: Commodityonline.com