MCX Copper may trade in a range between 426.2-454
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 Zinc market is under fresh selling as market has witnessed gain in open interest by 9.09% to settled at 7857 while prices down -5.05 rupees.
Now MCX Zinc is getting support at 184.7 and below same could see a test of 181.6 levels and resistance is now likely to be seen at 192.7, a move above could see prices testing 197.6.
Zinc on MCX settled down 2.62% at 187.80 dropped on fresh selling tracking weakness from LME Zinc prices which fell by more than 3% at the close of trading on Wednesday July 4, with the absence of US trading expediting a broad downtick in metals prices.
The continuation of growing trade concerns has facilitated market inactivity, and in turn, a broad decline in the complex, while a pullback in global equity markets and a fall in the Chinese yuan has added to bearish sentiment across commodities.
Falling 3.2% over the afternoon to a daily low of $2,687.50 per tonne, zinc prices are at their lowest since June 2017. Last night the US dollar inched down and hovered around 94.5 as markets remained wary over the China-US trade war ahead of tariffs implementation. While most LME base metals dropped.
LME zinc and lead fell over 2%, copper and nickel lost over 1%, tin inched down, while aluminium went up slightly. Copper touched the lowest level since August 2017, and zinc hit a record low since June 2017. Also China’s Caixin services purchasing managers’ index (PMI) for June came in at 53.9, compared with the expected 52.7 and May’s 52.9.
This marked the highest level in four months, indicating accelerating expansion in the sector, albeit softer than historical trends.
Trading Ideas:
–Zinc trading range for the day is 181.6-197.6.
–Zinc prices hit its weakest in a year as investors braced for a trade war between China and the United States.
–China’s threatened tariffs on $34 billion of U.S. goods will take effect from the beginning of the day on July 6, amid worsening trade tensions.
–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.
Courtesy: Kedia Commodities
Source: Commodityonline.com
