Zinc market under fresh selling; Support seen at 171.6
MCX Natural Gas may trade between 199.6-207.6 levels
Copper likely to trade in a range between 408.1-428.3
MCX Nickel under fresh selling; Support seen at 882.6
MCX Mentha Oil under long liquidation
Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 15.14% to settled at 3301 while prices down 1.9 rupees.
Now MCX Aluminium is getting support at 145.6 and below same could see a test of 144.5 level, And resistance is now likely to be seen at 148.7, a move above could see prices testing 150.7.
Aluminium on MCX settled down 1.28% at 146.70 tracking weakness from LME Aluminium prices which shed 1.3 percent to $2,097 a tonne weighed down by worries about China’s economy, escalating trade tensions.
Manufacturing activity in China, the world’s biggest consumer of industrial metals, grew last month at its slowest rate in more than a year, with export orders shrinking for a fifth month and employers cutting more staff, the Caixin/Markit Manufacturing Purchasing Managers’ Index showed.
Meanwhile traders are eyeing on the development out from the organization representing the US beer industry has called for the end of Section 232 tariffs on imports of aluminium from all countries and quotas on imports from Canada.
With alumina prices at extremely high levels and supply tightness showing no signs of easing, market participants are starting to question when downstream aluminium prices and premiums will begin to react.
Support can be seen as a vote by striking workers at Alcoa’s giant west Australian operations will close on Thursday, with the union anticipating a strong “no” vote that could prolong the four-week old strike.
Last night the US dollar index rallied to the highest since August 21, at 95.73, and closed at 95.41. Concerns over an escalating trade conflict between the US and China battered emerging market currencies and prompted investors to seek safe harbour of the dollar.
Trading Ideas:
–Aluminium trading range for the day is 144.5-150.7.
–Aluminium dropped on concerns the U.S.-China trade war could take a turn for worse while a stronger dollar also caused selling pressure.
–The city of Binzhou in eastern China’s Shandong province, is planning five new projects to support development of a high-end aluminium industry.
–Two global aluminium producers have offered Japanese buyers lower premiums for primary metal shipments for the October to December quarter.
Courtesy: Kedia Commodities
Source: Commodityonline.com
