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Wednesday, May 18, 2022

MCX Aluminium may trade between 140.6-144.4 levels

Nickel market under long liquidation; Support seen at 916.6

MCX Zinc may trade in a range between 161.9-173.1

MCX Copper may trade between 395.2-420.2 levels

Natural Gas market under long liquidation; Support seen at 202.4

MCX Crude Oil under long liquidation; Support seen at 4516

Technically MCX Aluminium is getting support at 143 and below same could see a test of 141.6 levels and resistance is now likely to be seen at 145.6, a move above could see prices testing 146.8.

Aluminium on MCX settled down -0.86% at 144.30 on Tuesday while Indian markets remain closed Wednesday on account of Independence Day. While Yesterday aluminum’s three-month price fell $45 to $2,025 per tonne plummeted at the close of trading largely affected by sharp risk-off sentiment amid volatile currency flows.

While today some support can be seen after the news that a Chinese delegation led by Vice Commerce Minister Wang Shouwen will travel to the United States for trade talks in late August, China’s Ministry of Commerce said on Thursday.

Today’s collapse in the base metals complex means all base metals, bar aluminium, are now sitting at their lowest levels this year; many have had the sharp gains made in the late 2017 ‘Trump Bump’ wiped out.  Equally, lead’s three-month price is down 6% and hit a low of $1,919 per tonne, its lowest point since September 2016 and falling 25% in the year to date.

Last night the US dollar index closed at 96.71 overnight after rising to over 96.98 earlier, the highest since June 2017 as investors added their holdings of the greenback on worries over slowing Chinese growth and Europe’s exposure to Turkey.

The Chinese yuan fell past 6.95 per dollar in  overnight offshore trading, following a batch of disappointing economic data earlier this week. The euro rebounded from a 13-month trough versus the dollar and Swiss franc, helped by news that Qatar pledged to invest $15 billion in Turkey.

Now a day ahead key things to watch today include the eurozone’s seasonally adjusted current account surplus in June and US initial jobless claims last week.

Trading Ideas:
–Aluminium trading range for the day is 140.6-144.4.
–Aluminium dropped as safe-haven demand rooted in fears over fallout from the Turkish lira’s recent drop boosted the U.S. currency.
–China July alumina output +8.3 pct y/y at 5.81 mln tonnes – stats bureau.
–Primary aluminium inventories across major consumption areas in China continued to decrease this week with limited arrivals.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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