MCX Zinc expected to trade in a range between 181.2-193.2
MCX Copper likely to trade in a range between 425.8-453.6
MCX Natural Gas likely to trade between 293.9-343.1 range
MCX Crude Oil may trade in range between 3641-4225.
MCX Nickel expected to trade between 773.2-814.4 levels
Technically Aluminium market is getting support at 137.9 and below same could see a test of 136.8 level, And resistance is now likely to be seen at 139.5, a move above could see prices testing 140.
Aluminium on MCX settled up 1.02% at 138.75 despite investors practiced caution amid mounting trade friction between the United States and China. Support seen after the news that Henan town shuts secondary aluminium producers for environmental upgrading.
Dazhou town in Henan province required all secondary aluminium producers to suspend operation to install environmental equipment. There are about 50 secondary aluminium producers in the town and most produce nonstandard products with capacity below 2,000 mt/year.
The current installation progress suggests that plants can resume output as early as December. This round of output suspension is likely to have minimal impact on the overall secondary aluminium market amid current quiet trading liquidity and as most local plants have adequate stocks of finished goods.
Last night the US dollar rallied from a two-week low and settled at 96.79 as a sell-off in global stock markets spurred safe-haven bids and investors grew concerned about slowing global growth.
Global stock markets were selling off on Tuesday as the tech slump that gripped US equities on Monday spread around the world. At the US open, all three major indexes dropped sharply, with the Nasdaq dipping another 2%.
In Base metals, except for LME aluminium, fell across the board with LME zinc leading the losses and closing 2.48% lower. LME lead declined 1.58%, copper dipped 1.31%, and nickel lost 0.94%.
Now a day ahead the US will release its weekly jobless claims, durable goods orders and existing home sales for October, University of Michigan consumer sentiment index for November, as well as weekly oil inventory data from the EIA today.
Trading Ideas:
–Aluminium trading range for the day is 136.8-140.
–Aluminium prices gained as support seen after China’s Primary aluminium capacity cuts to exceed 2 million mt in 2018
–However, persisting worries about the China-US trade conflict are expected to kept investors cautious.
–Federal Reserve caution on the global outlook and weak data at home, pointing to slower rate hikes.
Courtesy: Kedia Commodities
Source: Commodityonline.com
