MCX Copper may trade in a range between 424.1-435.5
Natural Gas market under short covering; Resistance seen at 191.3
MCX Crude Oil may trade between 4662-4856 levels
MCX Silver may trade between 38198-38864 levels
Gold market under short covering; Support seen at 29808
Technically Zinc market is under long liquidation as market has witnessed drop in open interest by 6.76% to settled at 5405 while prices down 1.3 rupees.
Now Zinc is getting support at 178.4 and below same could see a test of 177.1 levels and resistance is now likely to be seen at 181.7, a move above could see prices testing 183.7.
Zinc on MCX settled down 0.72% at 179.80 dropped on long liquidation tracking weakness from LME zinc which failed to stand firm above $2,600/mt with pressure from concerns over the trade spats between the US and EU. It dipped to a low of $2,573/mt but received support from the five-day moving average.
While Maintenance across smelters continued to weigh on supplies. There were also no large inflows of imported materials this week while downstream consumption fell to the lowest level in a seasonal lull. Market participants should monitor developments of the negotiation between smelters and miners on treatment charges (TCs).
Separately, brisk trades following the rebound in zinc prices eased after the Shanghai Futures Exchange raised transaction fees for closing out positions opened on the same day, for the zinc September contract. Fees grew from 3 yuan/lot to 15 yuan/lot, effective from the night trading session of July 23.
Last night the US dollar dipped to around 94, and closed at 94.19. Base metals were under pressure from ongoing worries over a trade war even though the EU and US declared a ceasefire. Now day ahead key things to watch today will be the European central bank’s rate decision for July, the US durable goods orders and wholesale inventories last month, as well as its weekly jobless claims.
Trading Ideas:
–Zinc trading range for the day is 177.1-183.7.
–Zinc dropped as prices failed to hold gains amid pressure from concerns over the trade spats between the US and EU.
–Shanghai Futures Exchange zinc stocks dropped to 58,016 tonnes, their lowest since February 2008.
Courtesy: Kedia Commodities
Source: Commodityonline.com
