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Friday, May 20, 2022

MCX Copper likely to trade between 442.6-449.2 levels

MCX Zinc expected to trade between 192-205.8 levels

MCX Natural Gas expected to trade between 187.9-196.7 levels

MCX Crude Oil may trade in a range between 3750-4018

MCX Nickel likely to move in a range of 905.9-965.5

MCX Aluminium under short covering; Support seen at 137

Technically Copper market is getting support at 444.3 and below same could see a test of 442.6 levels and resistance is now likely to be seen at 447.6, a move above could see prices testing 449.2.

Copper on MCX settled up 0.41% at 445.85 while overall market is trading in the range as trading was dampened by the week-long Lunar New Year holiday which has closed markets in China. Prices may face some resistance amid pressure from concerns over slowing factory activity in the world’s biggest industrial metals consumer China.

Stocks hovered near four-month highs after a mixed performance on Wall Street at the close of last week, while the dollar firmed against the yen following strong U.S. employment and manufacturing data. China’s factory activity shrank by the most in almost three years in January as new orders slumped further and output fell, a private survey showed, reinforcing fears that a slowdown in the world’s second-largest economy is deepening.

Also expectations of a trade deal between Washington and Beijing kept a floor under the market. U.S. President Donald Trump said he would meet China’s Xi Jinping soon to try to seal a comprehensive trade deal, citing substantial progress. Traders are eyeing on the top copper miner Codelco which said it had struck a contract deal with the union of supervisors at its Gabriela Mistral mine in northern Chile, averting the threat of a strike.

Now market players will keep an eye out on the Prelim Nonfarm Productivity q/q & Trade Balance data to gauge the strength of the economy. Also Federal Reserve Chairman Jerome Powell dined Monday night with Trump and Treasury Secretary Steven Mnuchin, the central bank said in a statement. The Fed said in a statement afterwards that Powell reiterated that “the path of policy will depend entirely on incoming economic information.”

Trading Ideas:
–Copper trading range for the day is 442.6-449.2.
–Copper gained as expectations of a trade agreement between Washington and Beijing underpinned the market.
–U.S. President Donald Trump said last week he will meet Chinese President Xi Jinping soon to try to seal a comprehensive trade deal.
–Traders have been buoyed by signs that a deal is close in trade talks between the U.S. and China.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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