MCX Cotton under fresh buying; Support seen at 22744
Zinc market is under short covering; Support seen at 173
MCX Cardamom may trade between 1388.6-1438.6 levels
Fresh selling seen in NCDEX Jeera; Resistance seen at 19730
NCDEX Turmeric under fresh selling; Resistance seen at 6816
Technically MCX Copper is getting support at 416.7 and below same could see a test of 413.7 levels and resistance is now likely to be seen at 421.5, a move above could see prices testing 423.3.
Copper on MCX settled up 0.94% at 419.65 gained on short covering as support seen from Rupee weakness and tracking firmness from Three-month copper on the London Metal Exchange snapped a five-day losing streak to trade up 0.6 percent at $5,848 a tonne, as the dollar index edged down from a two-week high, making metals slightly cheaper for holders of other currencies.
LME copper rose for a second straight session as a weaker dollar underpinned prices, although a trade war between the United States and top metals consumer China limited gains. The dollar sagged, pressured by the pound which rose after fears of Britain leaving the European Union with no comprehensive agreement faded.
Support seen despite the statement from US President Donald Trump said on Wednesday that the United States was not yet ready to come to an agreement over trade disputes with China but he said talks would continue.
The world’s two largest economies have slapped tariffs on $50 billion of each other’s goods in a tit-for-tat trade war, and Trump is considering imposing tariffs on another $200 billion in Chinese imports.
Last night the US dollar index edged down 0.31% to close at 95.1 as the pound jumped after it was reporter that Germany was prepared to make a major compromise on Brexit. Yesterday base metals closed mixed. LME copper spiked 0.73% higher, zinc grew 0.54%, while lead lost 0.85%, while aluminium went down 0.15%, and nickel dipped 0.12%. From data point the Caixin China services PMI slipped to 51.5 in August from 52.8 in July.
Trading Ideas:
–Copper trading range for the day is 413.7-423.3.
–Copper rose as a weaker dollar underpinned prices, although a trade war between the United States and top metals consumer China limited gains.
–China is the world’s biggest consumer of copper and a slowdown in its economy would weigh on global metals demand.
–Chilean state miner Codelco halted the operations of three out of four furnaces at its Ventanas copper foundry after finding high levels of sulphur dioxide.
Courtesy: Kedia Commodities
Source: Commodityonline.com
