Zinc market under long liquidation; Support seen at 185
Natural Gas market under fresh buying; Support seen at 246.4
MCX Cotton under fresh selling; Resistance seen at 22430
MCX Cardamom under fresh buying; Support seen 1415.2
NCDEX Jeera likely to move in a range of 20740-21780
Technically MCX Copper is getting support at 441.2 and below same could see a test of 437.9 levels and resistance is now likely to be seen at 449.9, a move above could see prices testing 455.3.
Copper on MCX settled down -1.48% at 444.55 as pressure seen extended its decline overnight as cautious investors eyed the upcoming US mid-term election and the resumption of Washington’s sanctions on Iran. Also pressure seen as LME copper inventories increased by a record 43,700 tonnes on Friday, with Asian warehouses seeing the bulk of the inflows.
The market had been previously concerned about falling LME inventories, which was also reflected in the strong backwardation of the prompt spreads. Although Friday’s inventory number did see the LME copper cash/3M backwardation weaken quite considerably, it has strengthened once again.
Last night the US dollar lost ground against most of major currencies on Monday, as growing expectations of an orderly Brexit bolstered the pound, euro and global investor sentiment.
The dollar closed at 96.32. This was ahead of the US midterm elections on November 6 that many analysts say will set the trend for the greenback, and all of the global currency market. LME base metals fell across the board while SHFE contracts closed mixed.
LME lead led the losses and settled 3.64% lower, copper lost 1.95%, nickel fell 1.63%, zinc dipped 0.99%, aluminium slid 0.63%. Pressure seen as China’s Caixin services PMI fell to 50.8 in October from 53.1 in September, the lowest since September 2017, and edged closer to the 50 line that separates growth from contraction.
Now a day ahead the IHS Markit will release its October service final PMI for Germany and the eurozone. The eurozone will also release its PPI for September. The US mid-term elections will be a key development to monitor tonight.
Trading Ideas:
–Copper trading range for the day is 437.9-455.3.
–Copper prices lost ground with the market easing back from high on concerns a trade deal between the United States and China may not be done soon.
–Government data showed U.S. job growth rebounded sharply in October and wages recorded their largest annual gain in 9-1/2 years.
–On-warrant copper stocks available to the market in LME-approved warehouses jumped 78 percent, or 44,950 tonnes, to 102,600 tonnes.
Courtesy: Kedia Commodities
Source: Commodityonline.com
