MCX Nickel expected to trade between 919.4-955 levels
Zinc market under long liquidation; Support seen at 178.4
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
Technically now Aluminium is getting support at 139.7 and below same could see a test of 138.7 levels and resistance is now likely to be seen at 142.2, a move above could see prices testing 143.7.
Aluminium on MCX settled down -1.12% at 140.65 dropped sharply tracking LME aluminium which actually jumped after opening overnight, to a high of $2,087.5/mt as the greenback weakened. However, it lost some 0.7% from Tuesday to close at $2,064/mt.
Inventory across LME warehouses fell 2,900 mt to 1,209,225 mt after several days of increase. The SHFE aluminium prices also declined as investors covered their longs. The amount of cancelled aluminium inventory – stock earmarked for delivery – rose 23,175 tonnes, mainly from Busan, taking on-warrant stocks to 939,975 tonnes.
Japan’s aluminium industry is more concerned about possible US import tariffs on automobiles that could impact a wider range of the country’s industries than the US duties already imposed on the light metal, the head of a trade body said on Wednesday.
While LME aluminium rose 2 percent on Monday as investors bought back bearish positions after a U.S. official raised the prospect of lifting sanctions on Russia’s Rusal. Cancelling sanctions on Rusal, the world’s biggest aluminium producer outside of China, would ease fears of a supply shortage.
However, some investors who had placed short positions in expectation of sanctions being lifted were now liquidating them. 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:
–Aluminium trading range for the day is 138.7-143.7.
–Aluminium prices dropped on profit booking despite of inventory across LME warehouses fell 2,900 mt to 1,209,225 mt after several days of increase.
–Cancelling sanctions on Rusal, the world’s biggest aluminium producer outside of China, would ease fears of a supply shortage.
–Global primary aluminium output fell to 5.321 million tonnes in June from revised 5.442 million tonnes in May, data from the IAI showed.
Courtesy: Kedia Commodities
Source: Commodityonline.com
