MCX Gold under long liquidation; Resistance seen at 32207
MCX Silver likely to move in a range of 37763-38841
MCX Crude Oil may trade between 3852-4020 levels
MCX Natural Gas under fresh Selling; Support seen at 196.9
MCX Copper likely to move in a range of 450.8-462.6
Technically MCX Zinc is getting support at 195.9 and below same could see a test of 194.9 level, And resistance is now likely to be seen at 198.2, a move above could see prices testing 199.5.
Zinc on MCX settled down 0.76% at 196.90 on Rupee firmness while profit booking also hit the prices after prices rallied this week on shortages for a fourth year running and historically low stocks of zinc are likely to propel prices of the metal to $3,000 a tonne over coming months, while an end to the U.S.-China trade dispute could spur even more gains.
Now investors awaited fresh clues on the progress of U.S.-China trade negotiations. Jiangsu province launched a yellow alert for smog in eight cities along the Yangtze River on Tuesday March 5, as severe air pollution is expected in the area on the afternoon of Wednesday March 6.
The eight cities include Nanjing, Wuxi, Changzhou, Jiangsu, Nantong, Yangzhou, Zhenjiang, and Taizhou. The yellow alert, the third one in a four-tier emergency response system, came after Jiangsu lifted the previous orange alert on Wednesday February 27.
For the most part the rallies in the base metals have halted while economic headwinds and lack of clarity on a US-China trade deal weigh on sentiment. Copper, nickel and zinc are generally holding up well and not giving back too much ground as prices consolidate, while aluminium, lead and tin are drifting more.
Key will be the extent to which prices can hold up at these relatively high levels. Now a day ahead traders are looking for China will release data on its foreign exchange reserve for February, and the US will release its ADP payroll data of last month, its trade account for December.
Trading Ideas:
–Zinc trading range for the day is 194.9-199.5.
–Zinc dropped as investors awaited fresh clues on the progress of U.S.-China trade negotiations.
–Shortages for a fourth year running and historically low stocks of zinc are likely to propel prices of the metal to $3,000 a tonne over coming months.
–Eurozone retail sales rebounded in January, adding to recent signs that the currency area’s economy may be levelling out after a sharp slowdown in 2018.
Courtesy: Kedia Commodities
Source: Commodityonline.com
