MCX Copper may trade in a range between 418.5-433.3
Natural Gas market under fresh buying; Support seen at 205.4
MCX Crude Oil may trade in a range between 4907-5035
Silver market under fresh selling; Support seen at 37282
Gold market under fresh selling; Support seen at 30039
Technically now Zinc is getting support at 174.2 and below same could see a test of 172.2 levels and resistance is now likely to be seen at 179, a move above could see prices testing 181.8.
Zinc settled flat amid a small growth in Chinese economic activity and persisting trade disputes with the US. Growth in China’s services industry picked up in August after dipping the previous month, an official survey showed, offering some cushion for the slowing economy as the United States ratchets up punitive tariffs on Chinese goods.
The official non-manufacturing Purchasing Managers’ Index (PMI) rose to 54.2 from an 11-month low of 54.0 in July. Zinc stocks across Shanghai bonded areas slumped 22,000 mt from a week ago to 99,000 mt as of Friday August 31, data showed.
Stocks shrank 11,000 mt week on week to stand at 121,000 mt last Friday. Separately, domestic social inventories of zinc inched up 4,000 mt to 109,000 mt as of August 31. Imports grew social inventories of zinc on a weekly basis as of Friday August 31.
Imports rose in an open import arbitrage window that has been open for three consecutive weeks. Stocks across the major markets of Shanghai, Tianjin, and Guangdong came in at 109,100 mt as of Friday August 31, up 4,000 mt from Friday August 24.
As of August 31, stocks across social warehouses in Shanghai jumped 6,900 mt from last Friday to 56,200 mt. This accounted for the increase in social inventories. Operating rates across domestic zinc oxide plants extended their decline in August, with fewer downstream orders and on environmental factors.
The rate came in at 50.87% in August, down 0.5 percentage point from July and down 5.63 percentage points from a year ago.
Trading Ideas:
–Zinc trading range for the day is 172.2-181.8.
–Zinc settled flat amid a small growth in Chinese economic activity and persisting trade disputes with the US.
–Growth in China’s services industry picked up in August after dipping the previous month, an official survey showed, offering some cushion for the slowing economy.
–Zinc stocks across Shanghai bonded areas slumped 22,000 mt from a week ago to 99,000 mt as of Friday August 31, data showed.
Courtesy: Kedia Commodities
Source: Commodityonline.com
