Natural Gas likely to trade in range between 232.9-247.3
MCX Crude Oil likely to trade in a range between 4822-4994
MCX Nickel may trade between 841-882.6 levels
MCX Aluminium likely to move in a range of 144-148
MCX Menthol Oil under fresh buying; Support seen at 1804.6
Technically Copper market is getting support at 433.5 and below same could see a test of 431.3 levels and resistance is now likely to be seen at 438.7, a move above could see prices testing 441.7.
Copper on MCX settled up 0.23% at 435.70 gained and moved slightly higher as the rupee depreciated against the dollar. While today sentiments can turn positive as reported by Bloomberg, the Chinese government is signaling further stimulus plans as manufacturing data continues to decline, and a continued slowdown in domestic growth as the US-China trade spat continues to take its toll.
China’s current piecemeal approach to fiscal stimulus appears to be having a far more muted effect than Shanghai originally hoped, with broader manufacturing PMIs showing accelerating downside pressure on Chinese manufacturers, and a Politburo meeting on Wednesday, tabled by President Xi Jinping, is promising to take further steps to counter downward pressures as China’s economic situation continues to change.
While Chinese manufacturing growth slid to its slowest pace in two years with export gauges continuing to contract further, and China will be looking for ways to further subvert negative tradewar repercussions, as the Chinese government’s recent steps on tax cuts and limited stimulus moves are seen to have limited effect.
Last night most LME and SHFE base metals ended in negative territory overnight with LME zinc being the biggest loser, down over 2% on the day. LME nickel tumbled close to 1.9%, lead dropped some 1.4%, aluminium lost 0.5% and copper fell 0.4%.
SHFE nickel slid more than 1.6%, zinc slipped over 1%, copper decreased close to 0.7%, aluminium sank over 0.4% while lead gained 0.25%. The US dollar edged up to a fresh 16-month high against a basket of key currencies on Wednesday as the US economy continued to strengthen, putting the greenback on pace for a seventh straight month of gains.
Trading Ideas:
–Copper trading range for the day is 431.3-441.7.
–Copper recovered after prices remained under pressure as dollar edged up to as the US economy continued to strengthen.
–China’s unwrought copper imports surged to their highest in 2-1/2 years in September.
–While copper concentrate imports climbed to a record high as the crackdown on scrap leaves it needing other forms of the metal.
Courtesy: Kedia Commodities
Source: Commodityonline.com
