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New York
Wednesday, May 31, 2023

MCX Copper under fresh buying; Resistance seen at 462.3

MCX Natural Gas under fresh buying; Support seen at 201.5

MCX Zinc under fresh buying; Support seen at 196.3

MCX Nickel under fresh buying; Support seen at 951.4

MCX Aluminium likely to trade between 144.3-147.7 levels

MCX Mentha Oil under fresh selling; Resistance seen at 1624.8

Technically Copper market is under fresh buying as market has witnessed gain in open interest by 0.81% to settled at 15458 while prices up 1.55 rupees.

Now MCX Copper is getting support at 458.8 and below same could see a test of 457.2 level, And resistance is now likely to be seen at 462.3, a move above could see prices testing 464.2.

Copper on MCX settled up 0.34% at 460.35 gained rose after top consumer China unveiled economic stimulus measures including tax cuts for manufacturing industry, bolstering the demand outlook. Also US Secretary of State Mike Pompeo, meanwhile, said the United States and China were “on the cusp” of a deal to end a trade dispute that has pushed metals prices sharply lower since last summer.

The Chinese stimulus measures, which included promises of infrastructure spending, were largely expected and come as overall economic growth is cooling, with Beijing saying it targets growth of 6-6.5% this year, down from 6.6% in 2018.

Supporting copper are signs of tight supply on the LME, where headline warehouse stocks, at 118,600 tonnes, are the lowest since May 2008 and the premium of cash copper over the three-month contract has risen to four-year highs at $63.

Now a day ahead traders are awaiting for data, China will release data on its foreign exchange reserve for February, and the US will release its ADP payroll data of last month, its trade account for December, and the weekly crude inventories by the energy information administration (EIA).

Trading Ideas:
–Copper trading range for the day is 457.2-464.2.
–Copper prices settled flat as the U.S. dollar strengthened and China cut its economic growth target and pledged measures to support its cooling economy.
–China will cut billions of dollars in taxes and fees, increase infrastructure investment, and step up lending to small firms, Premier Li Keqiang said.
–China aims to expand its economy by 6.0 percent to 6.5 percent in 2019, less than the gross domestic product growth of 6.6 percent reported last year.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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