MCX Aluminium may trade between 141.4-148.6 levels
MCX Mentha Oil under short covering; Support seen at 1292.9
MCX Zinc expected to trade between 189.4-199.2 levels
MCX Copper may trade between 439-456.6 levels
Natural Gas market under short covering; Resistance seen at 200
Technically Nickel market is getting support at 974 and below same could see a test of 963.5 levels and resistance is now likely to be seen at 1003.6, a move above could see prices testing 1022.7.
Nickel on MCX settled down 1.71% at 984.50 on fresh selling tracking weakness from LME Nickel which slipped 0.9 percent to settled at $14,425. LME nickel touched a low of $14,330/mt overnight on strong US dollar and trade war worries.
Inventory across LME warehouses shrank 1,908 mt to 269,898 mt. As most base metals dipped on weak Chinese economic data, and worries over trade war intensified last night as China’s Ministry of Foreign Affairs affirmed its stance towards the tariffs on US goods to be imposed on July 6.
Last night the US dollar inched down to close at 94.58 on a stronger euro before the US Independence Day holiday. Base metals mostly went down, however, due to worries over global trade conflicts and weak Chinese manufacturing data released earlier this week.
LME zinc led the losses and closed nearly 1.7% lower, nickel fell over 1.5%, aluminium dipped over 1%, and copper dropped nearly 1%, touching the lowest in nine months last night. The US factory orders exceeded expectations to rise 0.4% month on month in May, up from April’s -0.4%, which marked a record low in nearly six years.
Metals prices are likely to remain under pressure this week as traders digest the minutes of the Federal Reserve’s June meeting on Thursday, 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. On Friday, metals traders will turn their attention to the U.S. employment report for June for an update on the health of the labor market.
Trading Ideas:
–Nickel trading range for the day is 963.5-1022.7.
–Nickel dropped on worries about global growth due to a trade spat between the United States and China.
–Philippine President Rodrigo Duterte said he would soon halt mining in the Southeast Asian nation because of the environmental damage it has caused.
–As affected nickel pig iron output is set to resume gradually and demand from stainless steel slows down.
Courtesy: Kedia Commodities
Source: Commodityonline.com
