MCX Nickel likely to move in a range of 910.2-942.8
MCX Zinc under short covering; Support seen at 176.9
MCX Natural Gas under fresh selling; Support seen at 189.5
MCX Crude Oil under fresh buying; Resistance seen at 4754
MCX Silver under short covering; Support seen at 38157
Technically MCX Copper is getting support at 416.1 and below same could see a test of 411.9 level, And resistance is now likely to be seen at 423, a move above could see prices testing 425.7.
Copper on MCX settled up 1.48% at 420.35 receiving a boost from short-covering and falling inventories after steep losses driven by trade tensions.
Chinese policymakers are pumping more liquidity into the financial system and channeling credit to small and medium-sized firms, and Beijing looks set to further loosen monetary conditions to mitigate threats to growth from a heated Sino-U.S. trade war.
A union representing workers at Lumina Copper’s Caserones mine in Chile said that contract negotiations with the company had failed, paving the way for a potential strike. The union said that because of the breakdown it would reject a final proposal that could be submitted by the company up to July 24, and that government mediation would be the only way forward.
The company confirmed in a statement that there has been a breakdown in the talks, but said “there has been agreement in practically half of the points negotiated, and willingness to make improvements to the current agreement.”
Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 10.0 percent from last Friday, the exchange said. China’s copper scrap imports in May declined 33.3% from a year ago to stand at 210,000 mt, showed China Customs data.
This lowered copper scrap imports from January to May by 37.4% on the year, to 950,000 mt. China’s stricter inspections of all US-imported scrap accounted for the decline. Given the typical one-month shipment duration from the US to China, the inspections are set to impact China’s imports of copper scrap imports in June.
Trading Ideas:
–Copper trading range for the day is 411.9-425.7.
–Copper gained as prices received a boost from short-covering and falling inventories after steep losses driven by trade tensions.
–A union representing workers at Lumina Copper’s Caserones mine in Chile said that contract negotiations with the company had failed, paving the way for a potential strike.
–Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 10.0 percent from last Friday, the exchange said.
Courtesy: Kedia Commodities
Source: Commodityonline.com
