Natural Gas market under short covering; Support seen at 227.8
Crude Oil market under fresh selling; Support seen at 3580
Silver market under fresh buying; Support seen at 39358
Gold market under short covering; Support seen at 32004
MCX Mentha Oil under fresh selling; Support seen at 1567.4
Technically MCX Aluminium market is getting support at 127.7 and below same could see a test of 126.5 level, And resistance is now likely to be seen at 129.8, a move above could see prices testing 130.7.
Aluminium on MCX settled flat remain unchanged at 128.80 dropped from the day’s high on long liquidation tracking weakness from LME Aluminium which edged down 0.2% to $1,833 a tonne, also Shanghai aluminium touched its lowest since September 2016 in early trade but recovered slightly to close 0.7% down at 13,285 yuan a tonne as unexpectedly soft trade data in top consumer China outweighed record imports of the metal’s concentrates last year.
China’s exports fell by the most in two years in December, while imports also contracted, pointing to further weakness in the world’s second-largest economy in 2019 and deteriorating global demand.
Meanwhile, China’s 2018 imports of unwrought copper rose 12.9% from a year earlier to a record annual high of 5.3 million tonnes. Last night the US dollar remained flat and the safe-haven yen rose, after an unexpectedly sharp fall in China’s exports grew concerns about the global economy.
Related Post
The Federal Reserve affirmed its optimistic outlook for the US economy in 2019, as its vice-chairman Richard Clarida said on Monday that “the economy has good momentum going into 2019. Our priority is pursuing a monetary policy that will achieve our objective, which is full employment and price stability”.
This week metal traders will continue to monitor movements in the U.S. dollar, with the greenback in turn taking its cue from expectations around the Federal Reserve’s monetary policy plans.
Tuesday’s data on U.S. producer price inflation will be closely watched and if figures indicate that inflationary pressures are cooling, there could be a further reprieve from concerns over the prospect of additional rate hikes in the coming months.
Trading Ideas:
–Aluminium trading range for the day is 126.5-130.7.
–Aluminium dropped as pressure seen after data showed. China’s exports unexpectedly fell the most in two years in December.
–China’s aluminium exports in 2018 rose 20.9 percent from a year earlier to a record high, according to customs data.
–The world’s top aluminium producer exported 5.8 million tonnes of unwrought aluminium and aluminium products last year, the General Administration of Customs said
Courtesy: Kedia Commodities
Source: Commodityonline.com
