MCX Copper may trade between 410.6-423.8 levels
Natural Gas market under short covering; Support seen at 216.2
Crude Oil market under fresh buying; Support seen at 3733
Silver market under fresh selling; Support seen at 38768
MCX Gold likely to trade in a range between 31878-32218
Technically Zinc market is under long liquidation as market has witnessed drop in open interest by 6.32% to settled at 3575 while prices down 0.05 rupees.
Now MCX Zinc is getting support at 186.4 and below same could see a test of 185 levels and resistance is now likely to be seen at 189, a move above could see prices testing 190.2.
Zinc on MCX settled down 0.03% at 187.9 as pressure seen after update downward pressure on the economy will impact China’s job market.
China’s economy can maintain sustainable rates of growth despite global uncertainties, Vice President Wang Qishan said, days after the world’s second-largest economy posted its weakest expansion in nearly three decades.
In a remark apparently aimed at the United States, Wang also urged countries to uphold multilateralism and “respect the independent choices” of each other on technological innovation. Mounting pressure on the world’s second-biggest economy pushed growth last year to its lowest since 1990 even as Beijing stepped up stimulus measures and spurred banks to lend more.
On-warrant zinc stocks in LME warehouses tumbled to 67,725 tonnes, down from 117,075 tonnes at the start of January and the lowest since 2007. Exacerbating fears of low availability of metal is LME data showing two entities between them hold most LME zinc warrants.
Cash zinc still commands a premium over the three-month contract, suggesting nearby supplies are tight. But at $10.75 a tonne, the premium is far from a recent high of $125.
The global zinc market deficit widened to 96,600 tonnes last November from a revised deficit of 52,000 tonnes in October, data from the International Lead and Zinc Study Group (ILZSG) showed.
In the first 11 months of 2018 the zinc market had a 326,000 tonne deficit, compared with a deficit of 435,000 tonnes in the same period last year.
Trading Ideas:
–Zinc trading range for the day is 185-190.2.
–Zinc dropped as pressure seen after update downward pressure on the economy will impact China’s job market.
–On-warrant zinc stocks in LME warehouses tumbled to 67,725 tonnes, down from 117,075 tonnes at the start of January and the lowest since 2007.
–Cash zinc still commands a premium over the three-month contract, suggesting nearby supplies are tight.
Courtesy: Kedia Commodities
Source: Commodityonline.com
