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Sunday, May 22, 2022

MCX Zinc expected to trade between 192-205.8 levels

MCX Copper likely to trade between 442.6-449.2 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 Zinc market is getting support at 194.5 and below same could see a test of 192 levels and resistance is now likely to be seen at 201.4, a move above could see prices testing 205.8.

Zinc on MCX settled down 2.67% at 197 dropped on long liquidation and profit booking day after Zinc prices rise to seven-month high, supported by shortage concerns due to falling stocks and environmental constraints, while delays to new capacity across top producer China exacerbate the physical market.

China’s zinc output came in at 4.53mt in 2018, according to a survey of smelters by Antaike. That marked a fall of 4.6%, or 218,000t, from 2017, the steepest drop since 2013. Stocks of zinc at 112,500t are less than half the levels seen last August. Also worrying the market are cancelled warrants — metal earmarked for delivery – at nearly 50% of total stocks.

While concern about nearby zinc supplies has been fuelled by one company holding between 50-79% of LME zinc warrants and cash contracts. Zinc was the worst performer in the base metals complex in 2018, reporting a 25.7% drop on concerns of oversupply. It is up nearly 13% so far this year.

US President Donald Trump said last week he will meet Chinese President Xi Jinping soon to try to seal a comprehensive trade deal as Trump and his trade negotiator both cited substantial progress in two days of talks. The Fed said in a statement afterwards that Powell reiterated that “the path of policy will depend entirely on incoming economic information.”

The U.S. central bank last week signaled that its three-year drive to tighten monetary policy is close to an end due to rising headwinds to the economy. However, yields have since rebounded in the wake of a positive U.S. jobs report on Friday.

Trading Ideas:
–Zinc trading range for the day is 192-205.8.
–Zinc dropped on profit booking as pressure seen after rise in LME stocks.
–Traders have been buoyed by signs that a deal is close in trade talks between the U.S. and China
–China’s zinc output came in at 4.53 million tonnes in 2018, according to a survey of smelters by Antaike.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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