MCX Aluminium may trade between 141.4-148.6 levels
MCX Mentha Oil under short covering; Support seen at 1292.9
MCX Nickel likely to trade in range between 963.5-1022.7
MCX Copper may trade between 439-456.6 levels
Natural Gas market under short covering; Resistance seen at 200
Technically Zinc market is getting support at 191.1 and below same could see a test of 189.4 levels and resistance is now likely to be seen at 196, a move above could see prices testing 199.2.
Zinc on MCX settled down 1.78% at 192.85 dropped in the line of expectation tracking weakness from LME Zinc prices which was down 1.1 percent to $2,822 a tonne for the first time since August 2017 amid broadly bearish trading conditions.
Worries about global growth due to a trade spat between the United States and China, but a lower dollar and an equity market recovery offered some support. Meanwhile US President Donald Trump has this year sought to renegotiate some of the United States’ trading relationships, in particular with China.
Trump has imposed tariffs on some imports, in turn sparking retaliatory action by other countries, raising fears of a global trade war. While China accounts for nearly half of global copper demand, estimated this year at around 24 million tonnes.
The U.S. accounts for a smaller, but nevertheless significant 8 percent. Growth in China’s manufacturing sector cooled slightly in June as firms faced rising input costs and a decline in export orders amid an escalating trade dispute with the United States, a private survey showed on Monday.
Now Metals prices are likely to remain under pressure this week as traders digest the minutes of the Federal Reserve’s June meeting, when markets re-open after Wednesday’s Independence Day holiday.
The Fed hiked interest rates in June and signaled for the first time that they could lift rates four times this year, a typically negative factor. Traders will turn their attention to the U.S. employment report for June for an update on the health of the labor market. The report is expected to show that hiring cooled.
Trading Ideas:
–Zinc trading range for the day is 189.4-199.2.
–Zinc prices dropped tracking LME prices dropped by 1.2 percent to $2,789 as ongoing trade tensions between China and the United States curbed risk appetite.
–Spot zinc premiums in Shanghai dipped quickly, as smelters were more willing to destock at the end of the month.
–Zinc social inventory in Shanghai, Guangdong and Tianjin dipped over the weekend due to limited arrivals from smelters and bonded areas.
Courtesy: Kedia Commodities
Source: Commodityonline.com
