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Sunday, May 29, 2022

MCX Copper likely to trade in a range between 437.8-455.2

MCX Zinc may trade between 194.3-200.5 levels

Natural Gas market under fresh buying; Support seen at 232

MCX Nickel under fresh selling; Support seen at 882.3

MCX Aluminium under fresh selling; Resistance seen at 145.6

MCX Menthol Oil under fresh buying; Support seen at 1787.3

Technically market is getting support at 442.8 and below same could see a test of 437.8 levels and resistance is now likely to be seen at 451.5, a move above could see prices testing 455.2.

Copper on MCX settled down -0.02% at 447.80 tracking weakness from LME copper prices which fell for a third straight session on Thursday, hitting a two-week low as the metal considered to be an economic bellwether tracked a slump in global equity markets.

While Copper prices bounced from two-week lows as a sharp drop in inventories to their lowest in a dozen years outweighed worries about sliding stock markets and the potential for slower global growth.

On-warrant inventories – those not earmarked for delivery – in warehouses certified by the London Metal Exchange slid overnight by 9,150 tonnes to 72,625 tonnes, the lowest since December 2005, data showed on Thursday.

Last night the US dollar strengthened as the euro and pound slipped on Thursday after the ECB kept interest rates unchanged in their October policy meeting. The interest rate on the main refinancing operation, the marginal lending facility, and the deposit facility sit at zero, 0.25% and -0.40% respectively.

The expectation is that these rates will remain at their present levels at least through the summer of 2019. LME base metals, except for copper, ended in negative territory across the board overnight. Lead dipped 0.05%, nickel lost 0.25%, zinc fell by 0.6% and aluminium slipped 0.7%.

Copper climbed over 0.8%, lead advanced 0.74% while aluminium stayed flat, zinc dropped 0.43% and nickel sank 0.6%. Sentiment among German firms weakened further this month.

Now a day ahead Economic data slated for release today include Germany’s Gfk consumer confidence for November, US GDP, PCE price index and personal consumption for the third quarter as well as the University of Michigan’s consumer sentiment index for October.

Trading Ideas:
–Copper trading range for the day is 437.8-455.2.
–Copper dropped as the metal considered to be an economic bellwether tracked a slump in global equity markets.
–China, more than quadrupled the value of fixed-asset investment projects approved in the third quarter from the April-June period.
–Chile’s Antofagasta revised its full-year copper production guidance to 705,000-725,000 tonnes from 705,000-740,000 tonnes.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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