MCX Crude Oil under long liquidation
MCX Natural Gas may move in a range of 289.3-314.5
MCX Zinc likely to move in a range of 174.5-178.5
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 Copper market is getting support at 422.4 and below same could see a test of 419.9 level, And resistance is now likely to be seen at 428.8, a move above could see prices testing 432.7.
Copper on MCX settled down 1.31% at 424.80 eased amid further uncertainty over the direction of the U.S.-China trade war. U.S. President Donald Trump is open to reaching a deal on U.S.-China trade irritants over dinner on Saturday with Chinese leader Xi Jinping but is ready to hike tariffs on Chinese imports if there is no breakthrough, White House economic adviser Larry Kudlow said on Tuesday.
The comments came a day after Trump, who is due to meet with Xi this week, said he expected to move ahead with raising tariffs on $200 billion in Chinese imports to 25 percent from 10 percent currently and would also put tariffs on the rest of Chinese imports if negotiations are unsuccessful.
The greenback rose after Federal Reserve Vice Chair Richard Clarida backed further interest rate hikes, while investors waited on a speech by Fed Chairman Jerome Powell on Wednesday for clues on how many more times the central bank is likely to raise interest rates.
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.
ME 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.
Trading Ideas:
–Copper trading range for the day is 419.9-432.7.
–Copper dropped following a report that U.S. President Donald Trump expects to move ahead with raising tariffs on $200 billion of Chinese imports.
–Copper is down around 15 percent in London so far in 2018 on concerns the U.S.-China trade spat will hurt demand for industrial metals.
–China’s imports of scrap copper from the United States fell 37 percent from the previous month to just 6,065 tonnes in October
Courtesy: Kedia Commodities
Source: Commodityonline.com
