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Wednesday, August 17, 2022

MCX Nickel under short covering; Resistance seen at 946.8

MCX Zinc may trade between 177.3-182.3 levels

MCX Aluminium likely to move in a range of 139.8-142.4

MCX Mentha Oil under fresh buying; Support seen at 1572.4

MCX Natural Gas may trade between 188.8-192.6 levels

Crude Oil market under fresh buying; Support seen at 4756

Technically Nickel market is under short covering as market has witnessed drop in open interest by 9.46% to settled at 7376.

Now MCX Nickel is getting support at 933.8 and below same could see a test of 925.6 level, And resistance is now likely to be seen at 946.8, a move above could see prices testing 951.6.

Nickel on MCX settled up 0.57% at 942 tracking gained from LME nickel which climbed more than 1 percent across the board on Thursday, after U.S. President Donald Trump and European Union President Jean-Claude Juncker reached an agreement that investors hope will avert a trade war, and the dollar weakened.

Trump and Juncker said after meeting in Washington on Wednesday that they would seek to “resolve” U.S. tariffs on steel and aluminium and Europe’s retaliatory duties. That marked a step back from Trump’s signature import protections for American metal producers.

He also agreed to refrain from imposing car tariffs while the two sides launch negotiations to cut other trade barriers, easing the threat of a transatlantic trade war that has weighed on metals prices in recent weeks.

Last night the US dollar rose 0.6% to close at 94.76 as the euro fell. This followed the ECB’s decision to keep interest rate and its exit of QE on hold at its governing council meeting. Base metals was inched up for the most part as market worries eased after the US and EU stepped back from a potential trade war and agreed to be at the negotiation table.

Now a day ahead key things to watch today will be of profits of Chinese industrial companies above a designated size in June, the US GDP and personal consumption expenditures (PCE) price index in the second quarter, as well as the University of Michigan consumer confidence index in July.

Trading Ideas:
–Nickel trading range for the day is 925.6-951.6.
–Nickel prices gained as support seen after Chinese government’s recent fiscal stimulus.
–A high-grade nickel pig iron (NPI) plant in north China has suspended its production since last week on environmental concerns.
–Inventories across all Chinese ports increased by 360,000 wmt from a week ago to 9.85 million wmt.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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