MCX Copper likely to trade between 390-415.2 levels
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
Technically Zinc market is under short covering as market has witnessed drop in open interest by -5.18% to settled at 3609 while prices up 0.6 rupees.
Now MCX Zinc is getting support at 167.7 and below same could see a test of 165.3 level, And resistance is now likely to be seen at 172, a move above could see prices testing 173.9.
Zinc on MCX settled up 0.35% at 170.10 while earlier in the session prices dropped towards 167.50 level also on growing concerns of a global slowdown and weakening zinc consumption weighed on zinc prices, but support remains at the 166 level.
The contract is likely to rebound today, trading above the 168.50 level. Despite a decade-low in LME inventory, zinc’s three-month price continues face persistent downward pressure and is trading below its nearby $2,400-per-tonne threshold.
The metal’s futures price is down over 9% from last month’s high of $2,643.50 per tonne achieved on December 7. Pressure seen 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.
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.
Also due on Friday is the US will release December’s nonfarm payrolls, unemployment rate, November’s wholesale inventories, Germany will release its retail sales for November, and China will release Caixin services purchasing managers index for December.
Trading Ideas:
–Zinc trading range for the day is 165.3-173.9.
–Zinc prices gained amid signs of progress on trade talks between the United States and China
–An economic slowdown and ongoing trade tension with the US lowered manufacturing activity in China in December, the first since July 2016.
–The Caixin/Markit Manufacturing PMI for December fell to 49.7 from 50.2 in November, marking the first contraction since May 2017.
Courtesy: Kedia Commodities
Source: Commodityonline.com
