MCX Zinc may trade between 177.3-182.3 levels
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
Technically now Copper is getting support at 426.6 and below same could see a test of 424.1 levels and resistance is now likely to be seen at 432.3, a move above could see prices testing 435.5.
Copper on MCX settled down -0.28% at 428.90 while sentiments improved as buoyed by a 20-percent year-on-year jump in profits for China’s industrial companies in June, even as profit growth in the non-ferrous sector fell.
Shanghai copper edged up and is on course to gain 3.6 percent this week, which would mark its first weekly rise in seven after fears of a global trade war dragged on the market.
Yesterday base metal prices rose across the board, 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.
Last night the US dollar rose 0.6% to close at 94.76 as the euro fell. Base metals was inched up for the most part as market worries eased after the US and EU stepped back from a potential trade war and agreed to be at the negotiation table.
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.
Trading Ideas:
–Copper trading range for the day is 424.1-435.5.
–Copper pared gains on profit booking after prices remained supported amid tense negotiations at Chile’s Escondida copper mine, the world’s largest.
–Beijing vowed to pursue a more “vigorous” fiscal policy, including cutting taxes, as authorities stepped up efforts to support growth amid rising economic headwinds.
–Higher arrivals of cargoes and declining downstream demand at the end of the month grew supplies in the market.
Courtesy: Kedia Commodities
Source: Commodityonline.com
