MCX Nickel under short covering; Resistance seen at 946.8
MCX Aluminium likely to move in a range of 139.8-142.4
MCX Mentha Oil under fresh buying; Support seen at 1572.4
MCX Natural Gas may trade between 188.8-192.6 levels
Crude Oil market under fresh buying; Support seen at 4756
Technically MCX Zinc is getting support at 178.7 and below same could see a test of 177.3 level, And resistance is now likely to be seen at 181.2, a move above could see prices testing 182.3.
Zinc traded in the range as from the macro side, risks to Chinese zinc demand are increasing as the trade war between the country and the United States escalates, especially as China continues to face mounting internal risks from excessive debt.
While yesterday all base metal prices rose across the board on Thursday, after U.S. President Donald Trump and European Union President Jean-Claude Juncker reached an agreement that investors hope will avert a trade war, and the dollar weakened.
Trump and Juncker said after meeting in Washington on Wednesday that they would seek to “resolve” U.S. tariffs on steel and aluminium and Europe’s retaliatory duties. That marked a step back from Trump’s signature import protections for American metal producers.
He also agreed to refrain from imposing car tariffs while the two sides launch negotiations to cut other trade barriers, easing the threat of a transatlantic trade war that has weighed on metals prices in recent weeks.
The ECB decided on its governing council meeting that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0%, 0.25% and 0.40% respectively.
It also expects the key rates to stay at current levels to at least the summer of 2019. Now a day ahead key things to watch today will be of profits of Chinese industrial companies above a designated size in June, the US GDP and personal consumption expenditures (PCE) price index in the second quarter, as well as the University of Michigan consumer confidence index in July.
Trading Ideas:
–Zinc trading range for the day is 177.3-182.3.
–Zinc prices traded in range as worries over growth in top consumer China kept gains in check.
–Maintenance across smelters continued to weigh on supplies.
–There were also no large inflows of imported materials in the week while downstream consumption fell to the lowest level in a seasonal lull.
Courtesy: Kedia Commodities
Source: Commodityonline.com
