MCX Copper under fresh selling; Resistance seen at 419.1
MCX Zinc under fresh selling; Support seen at 168.6
MCX Nickel likely to move in a range of 915.4-958.2
MCX Mentha Oil under long liquidation; Resistance seen at 1589.9
MCX Natural Gas may trade in a range between 186.8-192.4
Technically Aluminium market is under short covering as market has witnessed drop in open interest by 0.6% to settled at 3141 while prices up 2.05 rupees.
Now MCX Aluminium is getting support at 139.5 and below same could see a test of 137.6 level, And resistance is now likely to be seen at 142.6, a move above could see prices testing 143.8.
Aluminium on MCX settled up 1.47% at 141.40 as support seen after the news that China’s aluminium producers are responding to tighter supply conditions by boosting output, data showed. China’s June output rose by 0.8 percent to 2.83 million tonnes, which on daily basis was the highest since June 2017, according to calculations based on official data.
While Base metals prices remained on a back footing in yesterday’s session with three-month prices on the London Metal Exchange down by an average of 0.7%. Prices are in low ground with US trade policy and slow/slowing global economic growth weighing on prices.
Economic data shows a generally weaker picture for Chinese industry with gross domestic product (GDP) growth slowing to 6.7% in the second quarter of 2018, from 6.8% in the first quarter. China’s industrial production rose 6%, from a prior reading of 6.8% and fixed asset investment climbed 6% from 6.1% previously. Retail sales, however, climbed 9% from a previous reading of 8.5%.
The strong dollar looks likely to remain a significant headwind for metals this week, with bearish price action in the metal looking set to continue despite growing risk aversion. Metals traders will be looking ahead to Federal Reserve Chairman Jerome Powell’s testimony on the economy and monetary policy to a Senate committee on Tuesday.
Powell will likely face questions on a wide range of economic issues, including the potential effect of the Trump administration’s trade policy on the economy.
Trading Ideas:
–Aluminium trading range for the day is 137.6-143.8.
–Aluminium gained amid market expectation of the US lifting its sanctions against Russia given improved relations between the two countries.
–China’s aluminium producers are responding to tighter supply conditions by boosting output, data showed.
–China’s June output rose by 0.8 percent to 2.83 million tonnes, which on daily basis was the highest since June 2017.
Courtesy: Kedia Commodities
Source: Commodityonline.com
