Natural Gas market under fresh selling; Support seen at 201.9
Crude Oil market under long liquidation; Support seen at 3212
MCX Nickel under short covering
MCX Aluminium may trade between 123.6-132 levels
MCX Mentha Oil under fresh buying; Resistance seen at 1587.4
Technically MCX Copper is getting support at 395.2 and below same could see a test of 390 levels and resistance is now likely to be seen at 407.8, a move above could see prices testing 415.2.
Copper on MCX settled down 1.84% at 400.30 after the report that China’s economic growth could fall below 6.5 percent in the fourth quarter as companies face increased difficulties, while prices recouping some of the previous session’s deep losses although concerns over economic growth in top consumer China kept a lid on prices.
Today LME copper rose 0.5 percent to $5,873 a tonne having slid more than 2 percent in the last session. The most-traded copper contract on the Shanghai Futures Exchange fell 1.3 percent to 47,300 yuan ($6,880.00) a tonne.
After China’s factory activity contracted for the first time in 19 months in December as domestic and export orders weakened further, a private survey showed. The Caixin/Markit Manufacturing Purchasing Managers’ Index for December fell to 49.7 from 50.2 in November, marking the first contraction since May 2017.
Manufacturing is a key source of jobs in China’s economy. Also last night the US dollar weakened following the biggest slump in ISM manufacturing activity index since 2008. The US dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.5% lower at 96.32.
Base metals after intial drop prices regained with LME aluminium surged over 3%, nickel gained 0.51%, zinc rose 0.31%, while copper lost 1.66%, and lead fell 0.87%. Robert Kaplan, president of the central bank’s Dallas district, said in an interview Thursday that the Federal Reserve ought to stop raising interest rates until it gets a clearer picture of where the economy is headed.
Trading Ideas:
–Copper trading range for the day is 390-415.2.
–Copper dropped as pressure seen after a key reading of the US manufacturing activity hit a two-year’s low with the largest drop in a decade.
–Chile’s copper production rose 7 percent from the previous year in November to 540,720 tonnes.
–Zambia’s 2018 copper production is projected to rise above the 800,000 tonnes produced last year.
Courtesy: Kedia Commodities
Source: Commodityonline.com
