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Sunday, November 28, 2021

MCX Zinc under fresh selling; Support seen at 183.3

Natural Gas market under fresh selling; Support seen at 193.2

MCX Nickel likely to move in a range of 950.4-982.4 levels

MCX Aluminium likely to move in a range of 141.2-148.2

MCX Mentha Oil under short covering; Support seen at 1411.6

Short covering seen in MCX Cotton

Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 44.01% to settled at 9070.

Now MCX Zinc is getting support at 183.3 and below same could see a test of 181.1 level, And resistance is now likely to be seen at 189.7, a move above could see prices testing 193.9.

Zinc on MCX settled down 2.65% at 185.55 tracking weakness from LME zinc prices which slipped 1.1 per cent to $US2705 broadly impacted by trade worries and volatile market conditions. Last night the US dollar index fell below 94 on weaker-than-expected salary data, but closed slightly up from the previous trading day, given a declining euro on political turmoil in London overnight.

Base metals mostly rose but with limited momentum with pressure from the China-US trade conflicts. LME copper led the gains and closed over 1.5% higher, aluminium, tin, and nickel grew nearly 1%, while zinc lost over 2%, and lead edged down.

While China’s foreign exchange reserves rose $1.51 billion in June to $3.11 trillion, compared with the expected $3.1 trillion, central bank data showed on Monday. The small increase marked a rebound after two consecutive months of decline.

Meanwhile the global economy is starting to show signs of strain from the “America First” push of U.S President Donald Trump who will hear renewed pleas to step back from a broader trade war when he visits Europe in the coming week.

Wall Street has taken the China-U.S. tariffs enacted on Friday in its stride so far, but investors are on alert for a ramp-up in the trade conflict. Now ahead of Key factors to watch today include China’s consumer price index (CPI) and producer price index (PPI) in June, as well as the ZWE economic sentiment index for eurozone and Germany in July.

Trading Ideas:
–Zinc trading range for the day is 181.1-193.9.
–Zinc prices dropped as the market looked ahead to rising supplies, a narrowing deficit and global trade tensions that are expected to weigh on metals.
–China’s broad economic growth was expected to ease to around 6.6 percent in the second half of this year, the State Information Center said.
–Zinc producer Red River Resources updates on June quarter Thalanga operation Zinc Concentrate production was up 24% from Q3

Courtesy: Kedia Commodities

Source: Commodityonline.com

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