Zinc market under short covering; Support seen at 187.2
MCX Natural Gas may trade in a range between 231.1-247.1
MCX Nickel likely to move in a range of 841.7-884.9
MCX Aluminium may trade between 142.8-147.8 levels
Crude Oil market under fresh selling; Support seen at 4574
Technically Copper market is under short covering as market has witnessed drop in open interest by 7.79% to settled at 13976.
Now Copper is getting support at 434.9 and below same could see a test of 428.9 levels and resistance is now likely to be seen at 444.3, a move above could see prices testing 447.7.
Copper on MCX settled up 1.16% at 440.75 tracking firmness from LME Copper prices which rose 1.6 percent to $6,089 per tonne as investors greeted the latest batch of earnings optimistically amid signs of easing trade tension.
The dollar sank, and oil tumbled. Support seen with most metals recovering from Wednesday’s dip amid a softer US dollar index and a continued drawdown in LME inventories.
Prices may see some sentimental support as market participants were also betting on economic stimulus measures in China after the world’s top metals consumer pledged to boost domestic infrastructure spending to combat a perceived slowdown in its economy.
Last night most LME and SHFE base metals ended in the black overnight with LME nickel being the best performer, up 2.5% on the day. LME copper and zinc surged 2.3%, lead jumped 1.75%, aluminium rose by over 1%.
The US dollar retreated from multi-month highs on Thursday while the pound rose the most in nine months on reports that London is close to a financial services deal with Brussels.
A British official said that London was close to a deal that will grant UK-based financial services firms basic access to the rest of the EU markets. The BOE announced it would keep interest rates unchanged on Thursday and this also bolstered the sterling, but the BOE also hinted at faster rate increases if Brexit goes smoothly.
The US will release October nonfarm payrolls, the September trade balance, durable goods orders and factory orders.
Trading Ideas:
–Copper trading range for the day is 428.9-447.7.
–Copper rallied after the presidents of the United States and China both expressed optimism about resolving a trade row between the two countries.
–Inventories of copper in LME-approved warehouses, at 143,125 tonnes, are down more than 60 percent since the 2018 peak near 390,000 tonnes.
–The problem is compounded by cancelled warrants at nearly 54 percent of total stocks and a large holding of copper warrants between 50 and 79 percent.
Courtesy: Kedia Commodities
Source: Commodityonline.com
