MCX Copper likely to trade in a range between 437.8-455.2
Natural Gas market under fresh buying; Support seen at 232
MCX Nickel under fresh selling; Support seen at 882.3
MCX Aluminium under fresh selling; Resistance seen at 145.6
MCX Menthol Oil under fresh buying; Support seen at 1787.3
Technically market is getting support at 196.1 and below same could see a test of 194.3 levels and resistance is now likely to be seen at 199.2, a move above could see prices testing 200.5.
Zinc on MCX settled down -0.58% at 197.85 tracking other Base metal prices on the London Metal Exchange which were mostly lower at the close of trading on Thursday October 25 amid continued strength in the US dollar index, while stronger earnings reports and a broadly positive European Central Bank outlook safeguarded commodity investments.
While prices may see support as the refined zinc market looks super tight. London Metal Exchange zinc spreads are stressed, with the cash-to-three months premium hitting a one-year high of $63 per tonne earlier this week. LME stocks are low, at just 99,900 tonnes excluding metal earmarked for physical load-out.
It’s the same story in Shanghai. ShFE zinc spreads are also in backwardation, while the premium for metal in bonded warehouses shot to multi-year highs in September. Last night the US dollar strengthened as the euro and pound slipped on Thursday after the ECB kept interest rates unchanged in their October policy meeting.
The interest rate on the main refinancing operation, the marginal lending facility, and the deposit facility sit at zero, 0.25% and -0.40% respectively. The expectation is that these rates will remain at their present levels at least through the summer of 2019.
LME base metals, except for copper, ended in negative territory across the board overnight. Lead dipped 0.05%, nickel lost 0.25%, zinc fell by 0.6% and aluminium slipped 0.7%.
Now a day ahead Economic data slated for release today include Germany’s Gfk consumer confidence for November, US GDP, PCE price index and personal consumption for the third quarter as well as the University of Michigan’s consumer sentiment index for October.
Trading Ideas:
–Zinc trading range for the day is 194.3-200.5.
–Zinc dropped on concerns of a slowdown in China, which pledged to support illiquid private companies after third-quarter GDP growth slowed to 6.5 percent.
–On-warrant zinc stocks in LME-registered warehouses, have fallen below 100,000 tonnes from almost 240,000 tonnes in August and are close to 10-year lows.
–The premium for cash zinc over the three-month LME contract, at $47, remains close to Monday’s $63 one-year high, signalling tight nearby supply.
Source: Commodityonline.com
