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Sunday, May 29, 2022

MCX Aluminium likely to move in a range of 134.8-137.4

MCX Gold under fresh buying; Support seen at 32943

MCX Silver under fresh buying; Resistance seen at 40784

MCX Crude Oil under fresh selling; Support seen at 3832

MCX Natural Gas may move in a range of 193.7-212.5

MCX Copper may trade between 433.3-442.1 levels

Technically MCX Aluminium market is getting support at 135.4 and below same could see a test of 134.8 level, And resistance is now likely to be seen at 136.7, a move above could see prices testing 137.4.

Aluminium on MCX settled unchanged at 136 despite LME aluminium jumped past the 60-day moving average to a day-high of $1,924/mt on Thursday before it lost most of those gains to end below the 60-day moving average at $1,906.5/mt likely to see relatively weak performance during the Chinese New Year break.

Meanwhile the Aluminum Corp of China (Chalco) said that it was implementing “flexible production” on about 200,000 mt/year of capacity at its Shandong Huayu facility due to high electricity tariffs, environmental restrictions and the market environment.

Huayu’s capacity cut of 50,000 mt/year in November was included in Chalco’s announcement of 470,000-mt capacity cut on November 30. Prices of electricity and coal are relatively high in Shandong and Huayu is located close to the smog-plagued 2+26 cities that are subjected to rigorous environmental restrictions.

Fed Chairman Jerome Powell said the case for rate rises had “weakened” in recent weeks. That weighed on the U.S. currency, which when it falls makes dollar-denominated assets cheaper for holders of other currencies. China’s manufacturing sector contracted for the second straight month in January.Even with government efforts to spur activity, concerns are growing that China may be at risk of a sharper-than-expected slowdown if the trade war with the United States drags on.

Now a day ahead Economic data slated for release today include China’s Caixin PMI, Germany’s Markit PMI, the eurozone’s Markit PMI and consumer price index as well as the US nonfarm payrolls report, Markit and ISM PMI, the University of Michigan consumer confidence index and weekly rig count. Data are all for January.

Trading Ideas:
–Aluminium trading range for the day is 134.8-137.4.
–Aluminium prices remained supported tracking firmness in LME prices amid tightening stocks.
–The global aluminium deficit for 2019 has been trimmed to 490,000 tonnes from 527,500 tonnes.
–China’s Chalco shuts Shandong aluminium plant amid rising power costs

Courtesy: Kedia Commodities

Source: Commodityonline.com

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