Nickel market under fresh selling; Support seen at 913.5
MCX Zinc likely to trade between 169.1-176.7 levels
MCX Natural Gas may trade in a range between 184.8-192.6
Crude Oil market under short covering; Support seen at 4608
Silver market under fresh selling; Support seen at 38256
Technically market is getting support at 414.9 and below same could see a test of 411.9 levels and resistance is now likely to be seen at 423.1, a move above could see prices testing 428.3.
Copper on MCX settled down -0.85% at 417.85 on fresh selling tracking weakness from LME copper prices which was depressed by a stronger US dollar to a low of around $6,150/mt. However, we expect copper prices to see limited downward room in the short term as the union at Escondida rejected BHP’s offer and a threat of strike remains.
While Concerns over the US-China trade disputes and weak Chinese economic data weighed on market sentiment and copper prices. Last night the US dollar index gained 0.48% to close at 94.96 on Federal Reserve Board chairman Jerome Powell’s remarks that back more rate increases as the economy is growing “considerably stronger”.
Robust data from the US industrial production and home builder confidence also provided support. Base metals saw mixed trading on the impact of trade war and slower growth of China’s economy. LME aluminium lost 1.5%, copper and nickel edged down, while zinc rebounded over 1%, and lead and tin gained slightly.
Copper and zinc touched a low in nearly a year overnight. Nickel and aluminium dipped to the lowest levels in four months. Meanwhile the US industrial production rose 0.6% last month after falling 0.5% in May. This was buoyed by a sharp rebound in manufacturing and further gains in mining output, the latest sign of robust economic growth in the second quarter.
Mining production increased 1.2% in June, adding to the 2.2% rise in May. Now day ahead, Key factors to watch today will be the US weekly crude oil inventories from the EIA as well as the eurozone’s consumer price index (CPI) in June.
Trading Ideas:
–Copper trading range for the day is 411.9-428.3.
–Copper prices edged lower pushed down by a stronger dollar and fears that demand will be damaged by a global trade war and weaker economic growth in China.
–Headline stocks of copper in LME-registered warehouses gained 2,525 tonnes, but were still at their lowest since January.
–Copper speculators switched to a net short position of 12,919 contracts, the CFTC said last week, the weakest position since December 2016.
Courtesy: Kedia Commodities
Source: Commodityonline.com
