Natural Gas market under fresh selling; Support seen at 202.7
MCX Crude Oil may trade between 3325-3539 levels
NCDEX Soyabean under fresh buying; Resistance seen at 3526
NCDEX Ref.Soya Oil likely to trade in range between 729-745
MCX Crude Palm Oil under short covering; Support seen at 531.2
Technically Copper market is getting support at 407 and below same could see a test of 404.2 levels and resistance is now likely to be seen at 412.2, a move above could see prices testing 414.6.
Copper on MCX settled up 0.04% at 409.75 after the biggest rise in three months in the previous session on investor hopes that Chinese measures to boost lending would be followed by progress in trade talks with the United States.
Prices were also supported by a weaker dollar after Federal Reserve Chairman Jerome Powell hinted that the pace of U.S. interest rate rises could slow. A weaker dollar makes metals cheaper for buyers using other currencies. Support also seen after US and Chinese officials are meeting for the first face-to-face talks since the two countries agreed in December to a 90-day truce in a trade war that investors fear will curb global economic growth.
China said on Monday it had the “good faith” to work with the United States to resolve trade frictions. U.S. Secretary of State Wilbur Ross said a good settlement was likely on immediate trade issues but an agreement on structural trade issues and enforcement would be harder.
Reserves came in at $3.07 trillion at the end of December, up from $3.06 trillion in November, according to the People’s Bank of China. Reserves in December exceeded market estimates of $3.07 trillion. The SAFE attributed the rising reserves to stronger non-dollar denominated currencies, price gains of treasury bonds of major countries, and asset price changes.
Now a day ahead Economic data slated for release today include China’s trade balance for December, Germany’s industrial output for November, the eurozone business climate index and consumer confidence index for December, as well as the US wholesale inventories and durable goods orders for November.
Trading Ideas:
–Copper trading range for the day is 404.2-414.6.
–Copper gained as investor sentiment was bolstered by China’s announcement of a new round of trade talks with the United States.
–China’s services sector extended its solid expansion in December, offering some cushion for the slowing economy.
–China’s factory activity contracted for the first time in over two years in December.
Courtesy: Kedia Commodities
Source: Commodityonline.com
