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 Aluminium under fresh buying; Support seen at 143
MCX Crude Oil may trade in a range between 4942-5206
Technically Zinc market is under long liquidation as market has witnessed drop in open interest by 3.05% to settled at 7617 while prices down 0.5 rupees.
Now MCX Zinc is getting support at 185 and below same could see a test of 182.7 level, And resistance is now likely to be seen at 189.9, a move above could see prices testing 192.5.
Zinc on MCX settled down 0.27% at 187.30 on long liquidation tracking LME Zinc prices which slid to fresh lows 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.
LME zinc tumbled 3.2 percent to finish at $2,700 a tonne, the lowest since June Last year. 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.
Related Post
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.
Traders are watching a large holding, between 40 and 50 percent of total zinc inventories on the LME. It has fuelled worries about a short-term shortage on the LME market and led to a premium for the cash contract over the three-month, which was at $51 on Wednesday.
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. Now Key factors to watch today include the US non-farm employment data in June and its trade balance in May.
Trading Ideas:
–Zinc trading range for the day is 182.7-192.5.
–Zinc prices tumbled as the Yuan rebounded and as imported zinc flowed into the market.
–PBOC Governor Yi Gang said that China will “keep the yuan exchange rate basically stable at [a] reasonable and balanced level”.
–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.
Courtesy: Kedia Commodities
Source: Commodityonline.com
