MCX Zinc likely to trade in a range between 194.7-199.9
Natural Gas under long liquidation; Support seen at 196.9
MCX Crude Oil likely to trade in a range between 3932-4176
MCX Silver expected to trade in a range between 39394-40422
MCX Gold likely to trade in a range between 33007-33757
Technically market is getting support at 460.4 and below same could see a test of 456 levels and resistance is now likely to be seen at 467.6, a move above could see prices testing 470.4.
Copper on MCX settled up 0.87% at 464.70 gained on short covering and on expectations of strong demand growth from top consumer China boosted sentiment, but the rally was capped by strong technical resistance at eight-month highs.
Last night base metals traded higher across the board with Lead advanced 2.37%, nickel climbed close to 1.18%, copper rose 0.87%, aluminium and zinc gained 0.50% as investors digested testimonies from the lead US trade negotiator with China and the top ranking Federal Reserve official.
Meanwhile the US dollar rebounded on Wednesday as investors digested testimonies from the lead US trade negotiator with China and the top ranking Federal Reserve official. Also Fed Chair Jerome Powell finished his second day of testimony in front of the House Financial Services Committee.
In a prepared statement, Powell told lawmakers Tuesday that while the US economy looks “healthy” and the outlook is “favorable,” there are some worrying signs on the horizon. US Trade Representative Robert Lighthizer also spoke Wednesday, saying in front of the House Ways and Means Committee that US issues with China are “too serious” to be resolved by promises of more purchases of US goods by Beijing.
Now a day ahead economic data slated for release today include China’s official manufacturing PMI for February, Germany’s CPI for February, the US’ weekly jobless claims, PCE price index, GDP and consumer spending for the fourth quarter as well as Chicago PMI for February. The US-North Korean summit in Hanoi would be another key thing to watch today.
–Copper trading range for the day is 456-470.4.
–Copper prices gained amid signs of falling supply and a softer dollar underpinned prices.
–Copper stocks at LME have tumbled to less than 30,000 tonnes from more than 130,000 tonnes in mid-January, reaching the lowest level since mid-2005.
–Nearby spreads have ballooned out to $5 and higher over much of the past week, reflecting a scramble for short holders to get metal, underpinning copper prices.
Courtesy: Kedia Commodities