MCX Copper under fresh selling; Resistance seen at 419.1
MCX Zinc under fresh selling; Support seen at 168.6
Short covering seen in MCX Aluminium; Support seen at 139.5
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 MCX Nickel is getting support at 923 and below same could see a test of 915.4 level, And resistance is now likely to be seen at 944.4, a move above could see prices testing 958.2.
Nickel on MCX settled down 2.4% at 930.50 tracking weakness with metals prices of steel-linked metals nickel and zinc came under pressure on lower demand expectations after China’s top steelmaking city, Tangshan, ordered steel mills to shut sintering plants for five days on Friday due to forecasts of heavy smog over the weekend.
While Base metals prices remained on a back footing in yesterdays 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. Investors will also get updates on U.S. retail sales, housing data and industrial production this week.
Trading Ideas:
–Nickel trading range for the day is 915.4-958.2.
–Nickel dropped on lower demand expectations after China’s top steelmaking city, Tangshan, ordered steel mills to shut sintering plants for five days.
–China’s economic growth slowed in the second quarter as the government’s efforts to tackle debt risks crimp activity and an intensifying trade war.
–China’s June crude steel output on a daily basis reached its highest since at least May 2014, according to National Bureau of Statistics data.
Courtesy: Kedia Commodities
Source: Commodityonline.com
