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Friday, July 1, 2022

MCX Aluminium likely to move in a range of 134-136.4

MCX Natural Gas may trade in a range between 305.3-336.3

MCX Nickel under short covering; Resistance seen at 771.4

MCX Mentha Oil under long liquidation

MCX Crude Oil may trade in range between 3398-3766

Silver market under long liquidation; Support seen at 35442

Technically MCX Aluminium is getting support at 134.5 and below same could see a test of 134 level, And resistance is now likely to be seen at 135.7, a move above could see prices testing 136.4.

Aluminium on MCX settled down 0.73% at 135.10 tracking weakness from international market which fell as much as 0.6 percent to 13,590 yuan ($1,956.55) a tonne, the lowest since Oct. 10, 2016, and stood at 13,610 yuan a tonne as of 0152 GMT. The metal is heading for a 2.8 percent drop in November.

As Chinese aluminium prices sunk to their lowest in more than two years on Friday and were on course for a third successive monthly drop, as stalling manufacturing growth compounded plentiful supply amid relatively lenient winter output curbs.

China’s official Purchasing Managers’ Index fell to 50 in November, missing market expectations and down from 50.2 in October. The 50-point mark is considered neutral territory, indicating no growth in activity or contraction on a monthly basis.

Last night the US dollar recovered but remained under 97 as concerns before the G20 meeting prompted investors to buy back the currency. Comments by the Federal Reserve chief were seen as a signal that a rising trend in interest rates may end, and this also supported the greenback.

At the G20 summit in Buenos Aires on Friday and Saturday, the US President Donald Trump and China President Xi Jinping are scheduled to discuss trade issues after months of tension between the world’s two biggest economies.

Now a day ahead economic data slated for release today include China’s official manufacturing purchasing managers index (PMI), Germany’s retail sales for October, and the eurozone’s consumer price index (CPI) for November. The G20 summit begins today in Argentina.

Trading Ideas:
–Aluminium trading range for the day is 134-136.4.
–Aluminium prices dropped as slow downstream demand weighed on fundamentals despite cuts on supplies.
–The Russian government could buy up to 50,000 tonnes of aluminium for the state reserve, in a move that would support sanctioned Russian aluminium producer Rusal.
–Supply cuts further lower social inventories of primary aluminium

Courtesy: Kedia Commodities

Source: Commodityonline.com

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