MCX Zinc under long liquidation; Support seen at 185
Natural Gas may trade between 193.2-200.6 levels
MCX Mentha Oil under fresh buying; Resistance seen at 1363.6
MCX Aluminium under fresh buying; Support seen at 143
MCX Crude Oil may trade in a range between 4942-5206
Technically MCX Nickel is getting support at 964.9 and below same could see a test of 952.9 level, And resistance is now likely to be seen at 988.2, a move above could see prices testing 999.5.
Nickel on MCX settled up 0.63% at 977 recovered from the day’s low while LME Nickel shed 1.9 percent to close at $14,145 a tonne as speculators stepped up selling ahead of new trade tariffs on goods from China and the United States which could dampen demand for industrial metals.
Nickel prices got support as declining domestic inventory and steel mills resuming operations from maintenance reduce the impact of macro uncertainties. Washington has said it would implement tariffs on $34 billion of Chinese imports on July 6, and Beijing has vowed to retaliate in kind on the same day.
China was ready to act, but would not fire the first shot in a trade war with the United States, its finance ministry said.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.
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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:
–Nickel trading range for the day is 952.9-999.5.
–Nickel gains as declining domestic inventory and steel mills resuming operations from maintenance reduce the impact of macro uncertainties.
–China’s finance ministry said it will not fire the first shot on implementation of tariffs in a trade dispute with the United States.
–China’s customs agency said that Chinese tariffs on U.S. goods. would immediately be implemented in retaliation.
Courtesy: Kedia Commodities
Source: Commodityonline.com
