MCX Zinc under fresh selling; Support seen at 168.6
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 Copper market is under fresh selling as market has witnessed gain in open interest by 0.3% to settled at 24421 while prices down 1.25 rupees.
Now MCX Copper is getting support at 419.1 and below same could see a test of 416.6 level, And resistance is now likely to be seen at 424, a move above could see prices testing 426.4.
Copper on MCX settled down 0.3% at 421.45 while prices gained from the day’s low while sentiments remain weak as on concerns over slowing economic growth in top industrial metals consumer China.
China’s economy expanded at a slower pace in the second quarter as Beijing’s efforts to contain debt hurt activity, while June factory output growth weakened to a two-year low in a worrying sign for investment and exporters as a trade war with the United States intensified.
Headline stocks of copper in LME-registered warehouses gained 1,525 tonnes to 257,200 tonnes on Monday, but were still at their lowest levels since January. Also China’s commerce ministry said on Monday it had filed a complaint to the WTO regarding Washington’s proposed tariff list on $200 billion worth of Chinese goods on July 16.
Meanwhile Copper speculators switched to a net short position of 12,919 contracts, the Commodity Futures Trading Commission said last week, the weakest position since December 2016. Last night base metals dipped for the most part on slower growth of China’s economy in the second quarter.
LME zinc led the losses and closed 4.2% lower, nickel fell 2.4%, lead declined over 2%, tin dropped 1.5%, and copper edged down. In addition to solid retail sales data, a narrowing trade deficit in April and May also supported expectations of a strong US GDP in the second quarter. Day ahead the key development today is the release of US industrial production data for June.
Trading Ideas:
–Copper trading range for the day is 416.6-426.4.
–Copper steadied after China’s second-quarter growth slowed as expected, with the focus expected to shift to China’s response to the latest U.S. tariffs plan.
–There is some evidence that China has begun easing credit restrictions, which would be supportive mostly for bulks and to a lesser extent to copper.
–Copper speculators switched to a net short position of 12,919 contracts, the Commodity Futures Trading Commission said last week.
Courtesy: Kedia Commodities
Source: Commodityonline.com
