MCX Crude Oil under long liquidation
MCX Natural Gas may move in a range of 289.3-314.5
MCX Copper may trade between 419.9-432.7 levels
MCX Zinc likely to move in a range of 174.5-178.5
MCX Nickel may trade between 750.5-768.9 levels
Technically market is getting support at 135.2 and below same could see a test of 134.5 level, And resistance is now likely to be seen at 136.9, a move above could see prices testing 137.9.
Aluminium on MCX settled down 1.13% at 135.75 tracking weakness from LME aluminium which closed off 1.1 percent at $1,930.50 despite China Hongqiao Group, the world’s biggest aluminium producer, has been ordered to close up to 550,000 tonnes of annual smelting capacity this winter.
Also recent supply cuts and the newly issued winter production curbs across Shandong’s Binzhou city are likely to provide a lift to aluminium prices in the short term, but we see limited upside room as the impact from Binzhou’s winter curbs is expected to be limited.
Last night the US dollar rose to the highest in two weeks after Federal Reserve vice chairman Richard Clarida said that the US central bank’s interest-rate policy should be aimed at sustaining economic expansion and that gradual interest-rate hikes are the best way forward.
Clarida also stressed the importance of monitoring new economic data as monetary policy is getting close to a neutral stance. In base metals, expect for SHFE nickel, fell across the board with LME tin leading the losses and closing 3.06% lower.
LME zinc slumped 2.49%, lead lost 2.34%, nickel declined 1.29%, aluminium dropped 1.26%, and copper slid 1%. SHFE tin dipped 1.32%, zinc fell 0.52%, aluminium, lead, and copper edged down, while nickel went up slightly.
Profits of China’s industrial enterprises above a designated size grew at an annualised rate of 3.6% in October, down from September’s 4.1%, according to NBS. The profit growth cooled for a sixth straight month in October as factory prices and the pace of sales increases softened amid uncertainties caused by China-US trade war.
Trading Ideas:
–Aluminium trading range for the day is 134.5-137.9.
–Aluminium prices eased amid further uncertainty over the direction of the U.S.-China trade war.
–China Hongqiao to close up to 550,000 T of aluminium capacity for winter
–US President Trump said it was “highly unlikely” he would accept China’s request to hold off on a planned increase in the tariffs from 10 percent to 25 percent.
Courtesy: Kedia Commodities
Source: Commodityonline.com
