MCX Zinc under long liquidation; Support seen at 185
MCX Nickel likely to move in a range of 952.9-999.5
Natural Gas may trade between 193.2-200.6 levels
MCX Mentha Oil under fresh buying; Resistance seen at 1363.6
MCX Crude Oil may trade in a range between 4942-5206
Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 1.4% to settled at 3188 while prices down 1 rupees.
Now MCX Aluminium is getting support at 143 and below same could see a test of 142.1 level, And resistance is now likely to be seen at 145.2, a move above could see prices testing 146.5.
Aluminium on MCX settled down 0.69% at 143.70 while prices can see some support as traders are monitoring the impact from the alumina production cut in Shanxi. LME Aluminium, was the only LME metal to end in the black, rising 0.4 percent to end at $2,089 a tonnes.
It got a boost when China’s top steelmaking city Tangshan ordered companies in the steel, coke and coal-fired power sectors to meet ultra-low emissions targets, the latest effort to curb air pollution.
Less than 10,000 mt of alumina production is estimated to be affected as Tianyuan Chemicals in Xiaoyi city, Shanxi province began maintenance on its production lines on Thursday July 5. Maintenance is scheduled to last eight days.
In Jiaokou county of Shanxi, nearly 28,000 mt of alumina output will be affected as a local producer carried out maintenance from June 23 to July 10. Last night the US dollar fell to a three-week low ahead of the tariffs on $34 billion of Chinese imports, while the euro strengthened.
Base metals mostly ceased their downward trend but remained weak. LME copper and aluminium lost over 1%, tin and zinc inched down, while lead rebounded just over 1%, and nickel went up slightly.
The US private sector employment grew by 177,000 in June, lower than the expected 190,000 and 189,000 in May, according to the ADP employment report. Now Key factors to watch today include the US non-farm employment data in June and its trade balance in May.
Trading Ideas:
–Aluminium trading range for the day is 142.1-146.5.
–Aluminium prices dropped as demand took a hit as the U.S. imposes new tariffs on $34 billion worth of goods from China.
–Alumina production in Lvliang of Shanxi province is likely to be affected as the area was highlighted in China’s three-year initiative to “make skies blue again”
–The decline in China’s social inventory of primary aluminium continued to slow as the slowdown in consumption suppressed purchasing interest downstream.
Courtesy: Kedia Commodities
Source: Commodityonline.com
