MCX Copper may trade in a range between 416.8-428.4
MCX Copper may trade in a range between 416.8-428.4
Natural Gas market under fresh selling; Support seen at 190.5
Crude Oil market under long liquidation; Support seen at 4714
Silver market under short covering; Support seen at 39164
Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 3.16% to settled at 8524 while prices down -0.25 rupees.
Now MCX Zinc is getting support at 174.6 and below same could see a test of 172.3 levels and resistance is now likely to be seen at 179.8, a move above could see prices testing 182.7.
Zinc on MCX settled down -0.14% at 176.85 despite LME zinc wazs inched up 0.45% to close at $2,575.5/mt overnight as trade war concerns eased, it continued to lack upward momentum to stand above $2,600/mt level.
Investors would take guidance from China and US’ import and export data during the day. LMe Zinc dropped by its 6 percent downside limit in Shanghai to 20,620 yuan per tonne, the lowest since June last year.
While LME zinc fell as much as 4.8 percent to $2,503, the lowest since June 2017, before paring losses to end at $2,563, off 2.6 percent. Last night the US dollar index continued to gain on steadily-rising US inflation data and trade war saga.
It closed at 94.8, with a slower growth rate from Wednesday. The US CPI in June rose 0.1% from May, lower from the expected and May’s 0.2% increase. However, the underlying trend continued to indicate a steady build-up of inflation pressures that could keep the Federal Reserve Board on a path of gradual interest rate increases.
While a tightening labour market and rising raw material costs are likely to push up inflation through next year. The US initial claims for unemployment benefits dropped more than expected, by 18,000 to a seasonally adjusted 214,000 for the week ended July 7, the lowest level since early May.
Trading Ideas:
–Zinc trading range for the day is 172.3-182.7.
–Zinc recovered some of its losses on short covering after prices dropped on a gaining US dollar and fears of a trade war.
–The Trump administration started the process of imposing tariffs on a further $200 billion of imports from China.
–South Korea declined to purchase 1,000 tonnes of zinc as it received a single bid, state-run Public Procurement Service said.
Courtesy: Kedia Commodities
Source: Commodityonline.com
