MCX Copper under fresh selling; Resistance seen at 419.1
MCX Nickel likely to move in a range of 915.4-958.2
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 Zinc market is under fresh selling as market has witnessed gain in open interest by 19.38% to settled at 9177 while prices down 7 rupees.
Now MCX Zinc is getting support at 168.6 and below same could see a test of 166.2 level, And resistance is now likely to be seen at 175.5, a move above could see prices testing 180.
Zinc on MCX settled down 3.94% at 170.80 tracking weakness from LME Zinc prices which touches lowest June 2017 after data showed that China’s economy expanded at a slower pace in the second quarter, pointing to weaker demand.
Economic activity in the world’s top consumer of metals was hobbled by efforts to contain debt, while June factory output growth weakened to a two-year low as a trade war with the United States intensified.
Zinc closed 4 percent lower at $2,474 per tonne. 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:
–Zinc trading range for the day is 166.2-180.
–Zinc prices dropped amid expectation that inventories to edge up in the week in anticipation of inflows of imported materials.
–Zinc social inventory in Shanghai, Guangdong and Tianjin fell 1,400 mt over the weekend to 97,900 mt as of Monday July 16 amid limited arrivals.
–Some 2,100 mt of drop in stocks in Shanghai contributed to the overall decline. Inventories grew 300 mt each in Guangdong and Tianjin from last Friday.
Courtesy: Kedia Commodities
Source: Commodityonline.com
