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Wednesday, July 6, 2022

MCX Copper may trade in a range between 402.9-435.3

Natural gas market under fresh selling; Support seen at 188.5

MCX Zinc under fresh selling; Resistance seen at 173.5

Crude Oil market under long liquidation; Support seen at 4590

MCX Nickel under fresh selling; Support seen at 898.8

Silver market under fresh selling; Support seen at 37820

Technically now Copper is getting support at 408.9 and below same could see a test of 402.9 levels and resistance is now likely to be seen at 425.1, a move above could see prices testing 435.3.

Copper on MCX settled down -3.57% at 414.8 Copper dropped on fears of slower demand due to renewed U.S.-China trade tensions and worries about slowing growth in top metals consumer China.

Also weighing on sentiment was data showing that China’s manufacturing sector grew at the slowest pace in eight months in July as export orders declined. U.S. officials confirmed that President Donald Trump’s administration proposed an increase in tariff rate on $200 billion worth of Chinese goods.

U.S. President Donald Trump sought to ratchet up pressure on China for trade concessions by proposing a higher 25 percent tariff on $200 billion worth of Chinese imports, his administration said on Wednesday.

The U.S. Federal Reserve kept interest rates unchanged on Wednesday but characterized the economy as strong, keeping the central bank on track to increase borrowing costs in September. China’s Caixin manufacturing purchasing managers’ index (PMI) declined to 50.8 in July from June’s 51.0, lower than the expected 51.

A reading above 50 indicates expansion, while a reading below that signals contraction. The country’s economic activity fell to an eight-month low for July as new export orders fell at the steepest pace in more than two years.

Manufacturing output and new business growth slowed in July from June, which drove companies to continue to cut employment. Private payrolls in the US increased by 219,000 in July, more than the expected 186,000, ADP and Moody’s Analytics said. Job growth in July was also revised up to 181,000 from 177,000. Key factors to watch today will be US initial jobless claims last week, factory orders and durable goods orders in June.

Trading Ideas:
–Copper trading range for the day is 402.9-435.3.
–Copper dropped on fears of slower demand due to renewed U.S.-China trade tensions and worries about slowing growth in top metals consumer China.
–Also weighing on sentiment was data showing that China’s manufacturing sector grew at the slowest pace in eight months in July as export orders declined.
–The union at Escondida, said that an early, partial vote count on a final contract offer suggests its members will reject the offer and approve a strike.

Courtesy: Kedia Commodities 

Source: Commodityonline.com

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