Zinc market under fresh selling; Support seen at 184.7
Natural Gas market under fresh selling; Support seen at 194.1
Fresh Buying seen in MCX Crude Oil; Support seen at 5068
Short covering seen in MCX Cotton
MCX Cardamom likely to move in a range of 996-1044
Technically Copper market is getting support at 432 and below same could see a test of 426.2 levels and resistance is now likely to be seen at 445.9, a move above could see prices testing 454.
Copper on MCX settled down 1.77% at 437.85 on fresh selling in the line of expectation tracking LME Copper prices which fell to a fresh nine-month low on Wednesday, ahead of the implementation of trade tariffs on goods from China and the United States, which could dampen demand for the industrial metal.
Pressure seen as China’s threatened tariffs on US$34 billion of U.S. goods will take effect from the beginning of July 6, a person with knowledge of the plan told Reuters, amid worsening trade tensions between the world’s two largest economies.
Also China is putting pressure on the European Union to issue a strong joint statement against President Donald Trump’s trade policies at a summit later this month, but is facing resistance, European officials said.
Meanwhile Indonesia has extended a temporary operating permit for Freeport McMoRan Inc’s Grasberg project, the world’s second-biggest copper mine, until the end of the month, while discussions continue over long-term rights.
Workers at Codelco’s Chuquicamata copper mine in Chile, the state miner’s second largest by output, threatened last week to strike over plans to transform the century-old open pit into an underground mine.
While Growth in China’s services sector accelerated in June to a four-month high, buoyed by a pickup in new businesses and a sustained increase in employment, a private survey showed.
Now trader are caution ahead of key factors to watch today include the US ADP employment data in June, its weekly jobless claims, June’s non-manufacturing PMI surveyed by the ISM, and weekly crude oil inventory data from the EIA.
Trading Ideas:
–Copper trading range for the day is 426.2-454.
–Copper dropped amid worries over trade war intensified as China’s Ministry of Foreign Affairs affirmed its stance towards the tariffs on US goods to be imposed on July 6.
–Indonesia has extended a temporary operating permit for Freeport McMoRan Inc’s Grasberg project, until the end of the month.
–Workers at Codelco’s Chuquicamata copper mine in Chile, threatened last week to strike over plans to transform the century-old open pit into an underground mine.
Courtesy: Kedia Commodities
Source: Commodityonline.com
