MCX Crude Oil expected to trade in a range between 5152-5304
MCX Silver likely to trade in a range between 37558-38450
MCX Aluminium may trade between 146.2-151.4 levels
MCX Menthol Oil likely to move in a range of 1603.7-1679.5
MCX Cotton under fresh selling; Support seen at 22140
Technically MCX Nickel is getting support at 916 and below same could see a test of 907.9 level, And resistance is now likely to be seen at 938.5, a move above could see prices testing 952.9.
Nickel on MCX settled down 1.38% at 924 dropped tracking LME nickel prices which dropped on long liquidation as recovering in dollar ahead of Fed meet weighed. However, downside seen limited as shutdown of BHP’s Kalgoorlie smelter is set to provide support to the price in the fourth quarter.
Last night the dollar gained in choppy trading after the Fed raised US interest rates as expected for the eighth time, flagged more rate hikes and signaled the end of the “accommodative” policy era. The statement said the Fed still foresees another rate hike in December, three more next year, and one increase in 2020.
It also said it sees three more years of economic growth. Fed policymakers boosted the benchmark overnight lending rate by a quarter of a percentage point to a range of 2-2.25%. Fed members also decided to drop language saying that “the stance of monetary policy remains accommodative.”
In his press briefing, Fed Chairman Jerome Powell clarified that the word “accommodative” was removed as a sign monetary policy is proceeding in line with expectations. While trader are caution as Persistent concerns over tit-for-tat trade tariffs between China and the United States are denting demand for risky assets, such as metals.
Now a day ahead traders will be eyeing on key economic data slated for release include China’s August industrial profits, the eurozone’s September consumer confidence and economic sentiment, Germany’s September consumer inflation and October consumer confidence, US second-quarter economic growth, August wholesale inventories, durable goods orders and pending home sales and weekly initial jobless claims.
Trading Ideas:
–Nickel trading range for the day is 907.9-952.9.
–Nickel dropped as recovering in dollar ahead of Fed meet weighed.
–Nickel to hit 110,000 yuan/mt in Q4 on the shutdown of BHP’s Kalgoorlie smelter
–BHP’s Kalgoorlie nickel smelter has been closed this week following a fire at the Western Australian site over the weekend.
Courtesy: Kedia Commodities
Source: Commodityonline.com
