MCX Aluminium likely to move in a range of 144.1-151.1
MCX Mentha Oil market under short covering
MCX Zinc may trade in a range between 175.6-181.6
MCX Copper likely to trade between 414-429.6 levels
MCX Natural Gas may trade in a range between 198.3-203.5
Technically Nickel market is getting support at 937.3 and below same could see a test of 923.4 level, And resistance is now likely to be seen at 959.3, a move above could see prices testing 967.4.
Nickel on MCX settled up 2.05% at 951.30 gained on short covering tracking LME Nickel which added 0.9% to settled at US$13540 as the U.S.-Mexico trade deal raised hopes for an agreement between the United States and China and as the dollar slipped.
The United States and Mexico agreed on Monday to overhaul the North American Free Trade Agreement (NAFTA), putting pressure on Canada to agree to new terms on auto trade and dispute settlement rules to remain part of the three-nation pact.
The lower U.S. currency makes dollar-denominated metals cheaper for non-U.S. firms, which potentially should boost demand. China is the world’s largest copper consumer, accounting for nearly half of global demand at around 24 million tonnes.
Ample supplies and worries about Chinese demand are why funds have short positions or bets on lower prices. Yesterday most LME and SHFE base metals gained. LME aluminium jumped 2.4%, nickel rose 1.6%, copper increased over 1%, while SHFE nickel surged 1.5%, aluminium went up 1.2%, and copper closed 0.78% higher.
While US wholesale inventories gained 0.7% in July and stocks at retailers increased 0.4%, suggesting inventories could bolster GDP this quarter. With another fairly light week on the economic calendar investors will continue to monitor developments on the U.S. political front after a bruising week for President Donald Trump, following the criminal conviction of two associates.
Today investors will get the chance to parse a revision to second quarter U.S. GDP. Growth is expected to be revised down to 4% from the initial estimate of 4.1%, but that would still represent the fastest pace of growth in four years.
Trading Ideas:
–Nickel trading range for the day is 923.4-967.4.
–Nickel prices gained as the US dollar hovered at lows and as fundamentals provided support.
–China’s investment growth, already at record lows, may weaken even further in the future and authorities should step up fiscal and financial measures to give it a boost.
–Beijing is urging more infrastructure spending as the economy faces both domestic and external risks, such as U.S. tariffs.
Courtesy: Kedia Commodities
Source: Commodityonline.com
