MCX Zinc expected to trade between 192-205.8 levels
MCX Copper likely to trade between 442.6-449.2 levels
MCX Natural Gas expected to trade between 187.9-196.7 levels
MCX Nickel likely to move in a range of 905.9-965.5
MCX Aluminium under short covering; Support seen at 137
Technically now Crude Oil is getting support at 3798 and below same could see a test of 3750 levels and resistance is now likely to be seen at 3932, a move above could see prices testing 4018.
Crude Oil on MCX settled down -1.89% at 3845 on profit booking after prices gained buoyed by expectations of tightening global supply amid U.S. sanctions on Venezuela and production cuts led by OPEC. U.S. sanctions on Venezuela had focused market attention on tighter global supplies.
The sanctions will sharply limit oil transactions between Venezuela and other countries and are similar to but slightly less extensive than those imposed on Iran last year. Oil supply from the Organization of the Petroleum Exporting Countries fell in January by the largest amount in two years, a survey found, as Saudi Arabia and its Gulf allies over-delivered on the group’s supply-cutting pact while Iran, Libya and Venezuela registered involuntary declines.
Russia has been in full compliance with its pledge to gradually cut its oil production, Russian Energy Minister Alexander Novak said in a statement, adding that production decreased by 47,000 barrels per day (bpd) in January from October. Recent Chinese economic data has revealed signs of a slowdown in the world’s second-largest economy as uncertainty over trade negotiations hampered activity.
Data showed that the number of oil rigs operating in the U.S. hit an eight-month low and optimism that the OPEC-led effort to reduce output would help temper the global supply glut supported prices. But White House economic adviser Kevin Hassett dampened optimism over the trade talks between Washington and Beijing as he told CNBC that the amount of progress ahead of the March 1 deadline remained to be seen and added that “there’s still a lot of work to do.”
Trading Ideas:
–Crude Oil trading range for the day is 3750-4018.
–Crude oil gained buoyed by expectations of tightening global supply amid U.S. sanctions on Venezuela and production cuts led by OPEC.
–U.S. sanctions on Venezuela had focused market attention on tighter global supplies.
–Oil supply from the Organization of the Petroleum Exporting Countries fell in January by the largest amount in two years, a survey found.
Courtesy: Kedia Commodities
Source: Commodityonline.com
