MCX Mentha Oil likely to trade in a range of 1672.1-1715.7
MCX Aluminium may trade between 134.3-137.3 levels
MCX Nickel may move in a range of 747.3-772.5
MCX Copper likely to move in a range of 421.1-442.5
MCX Natural Gas may trade between 289.7-333.5 levels
Technically Zinc market is getting support at 176.3 and below same could see a test of 172.2 level, And resistance is now likely to be seen at 182.7, a move above could see prices testing 185.
Zinc on MCX settled up 2.12% at 180.30 in the line of expectation tracking firmness from LME Zinc prices which rose as falling stockpiles and rising premiums for nearby metal highlighted a short-term supply squeeze, halting a slide to 10-week lows.
The metal, used to galvanise steel, had tumbled more than 7 percent from last Thursday’s close as traders anticipated an increase in supply and weakening demand from steelmakers. Zinc inventories in LME-registered warehouses fell by 1,025 tonnes to a 10-year low of 120,250 tonnes.
Speculative investors were beginning to ramp up bets on lower prices, with their net short expanding to 3 percent of open contract. Last night the US dollar dipped from two-week highs after Federal Reserve Chairman Jerome Powell described US interest rates as “just below” the neutral rate.
Investors were also focused on the G20 summit in Buenos Aires on Friday and Saturday, where Trump and China President Xi Jinping are scheduled to discuss trade issues. While US economic growth slowed in the third quarter as previously reported, but the pace was likely strong enough to keep growth on track to reach the Trump administration’s target of 3% this year.
Also GDP increased at an annualised rate of 3.5% in the third quarter, the Commerce Department said on Wednesday.
Now a day ahead economic data slated for release today include the US weekly jobless claims, its PCE price index, personal spending, and existing home sales for October, Germany’s unemployment rate and CPI for November, as well as the eurozone’s business climate Index and consumer sentiment index for November.
Trading Ideas:
–Zinc trading range for the day is 172.2-185.
–Zinc prices rose as falling stockpiles and rising premiums for nearby metal highlighted a short-term supply squeeze, halting a slide to 10-week lows.
–Despite expectations of a rise in supplies, current supply bottlenecks and stable demand across Chinese markets are likely to limit downside room.
–Social inventories of refined zinc across Shanghai, Guangdong and Tianjin stood at 126,300 mt up 1,100 mt.
Courtesy: Kedia Commodities
Source: Commodityonline.com
