MCX Nickel may trade between 911.6-946.2 levels
MCX Aluminium likely to move in a range of 141.5-146.3
MCX Mentha Oil under short covering; Support seen at 1655.9
MCX Copper likely to trade between 402.2-416.8 levels
Natural Gas market under fresh buying; Support seen at 206.4
Technically market is getting support at 172.1 and below same could see a test of 169.9 levels and resistance is now likely to be seen at 175.5, a move above could see prices testing 176.7.
Zinc on MCX settled up 0.69% at 174.25 tracking firmness from LME Zinc where longs where added positions, LME reversed early losses and closed at $2,465/mt on Thursday as sentiments improved after China’s central bank said it will not resort to strong stimulus to support the slowing economy, but will keep liquidity reasonably ample and offer more help to companies that are having trouble obtaining financing.
While Last night the dollar stopped a five-day losing streak and the euro fell on Thursday. The greenback received a boost from political uncertainty, a new round of trade tariffs and the Federal Reserve’s latest policy meeting minutes that left little doubt that the US central bank will further raise interest rates.
The dollar index gained 0.57% to close at 95.617. LME base metals closed mixed on Thursday. Lead soared over 2%, aluminium inched up 0.24%, zinc nudged up 0.1% while copper dropped 0.76% and nickel slumped 2.5%. Also SHFE base metals also saw mixed performance overnight.
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Lead and zinc jumped over 1%, aluminium increased 0.55%, copper gained 0.46% while nickel fell over 1%. Data from US side showed the number of Americans filing for unemployment benefits fell last week, a sign that the labour market was holding firm despite tensions between the US and its trading partners that have grown restrictions on global commerce.
Now day ahead the key developments to monitor today are Germany’s GDP growth in the second quarter, US durable goods orders data for July. Also a three-day congregation among leading central bankers at Jackson Hole, Wyoming, began on Thursday.
Trading Ideas:
–Zinc trading range for the day is 169.9-176.7.
–Zinc prices gained on short covering after prices remained under pressure after a new round of US tariffs on $16 billion worth of Chinese imports took effect on Thursday.
–Shanghai zinc stocks at 34,930 tonnes, the lowest since November 2007, having fallen by 14,313 tonnes from the previous week.
–China’s production of zinc, slipped by 3.5 pct year-on-year in July to its lowest monthly level since August 2013, the National Bureau of Statistics said.
Courtesy: Kedia Commodities
Source: Commodityonline.com
