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 Nickel may trade between 750.5-768.9 levels
MCX Aluminium likely to move in a range of 134.5-137.9
Technically MCX Zinc market is getting support at 175.5 and below same could see a test of 174.5 level, And resistance is now likely to be seen at 177.5, a move above could see prices testing 178.5.
Zinc on MCX settled down 1.83% at 176.55 as demand worries escalated on Chinese steel price weakness and mounting U.S.-Sino trade tensions, while tin prices sank to two-year lows. Concerns seen as U.S.
President Donald Trump told the Wall Street Journal he expects to raise tariffs on $200 billion of Chinese imports to 25 percent from 10 percent. He is due to meet Chinese President Xi Jinping on the sidelines of the G20 summit in Buenos Aires this week.
Zinc’s three-month price continued to slide over the nearing $2,400 per tonne. Prices are exhibiting a significant drawdown in LME stock, with zinc’s inventory at 10-year lows.
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.
In base metals, expect for SHFE nickel, fell across the board with LME tin leading the losses and closing 3.06% lower. 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.
The slowdown was largely due to cooling factory-gate inflation and a high base, NBS official He Ping said in a statement. Now a day ahead the US will release PCE price index, its GDP for the third quarter, October’s wholesale Inventories, and weekly crude oil Inventory data from the EIA.
Trading Ideas:
–Zinc trading range for the day is 174.5-178.5.
–Zinc dropped as expectations of weaker demand from Chinese steel mills overpowered signs that the market is short of metal.
–Zinc prices have fallen 30 percent from a February high as investors anticipated a surge in refined zinc output after a clutch of new mine openings.
–The roughly 13.5 million-tonne-a-year zinc market had a 305,000 tonne deficit over January-August, according to the International Lead and Zinc Study Group.
Courtesy: Kedia Commodities
Source: Commodityonline.com
