MCX Mentha Oil likely to trade in a range of 1672.1-1715.7
MCX Nickel may move in a range of 747.3-772.5
MCX Zinc likely to move in a range of 172.2-185
MCX Copper likely to move in a range of 421.1-442.5
MCX Natural Gas may trade between 289.7-333.5 levels
Technically MCX Aluminium is getting support at 135.2 and below same could see a test of 134.3 level, And resistance is now likely to be seen at 136.7, a move above could see prices testing 137.3.
Aluminium on MCX settled up 0.26% at 136.10 tracking firmness from LME aluminium firmed by 0.1 percent to $1,933 as support seen after the news that China Hongqiao Group, the world’s biggest aluminium producer, has been ordered to close up to 550,000 tonnes of annual smelting capacity this winter.
While rebounded base metals across the board buoyed prices of aluminium, domestic weak fundamentals are still likely to weigh on the SHFE 1901 contract in the short run. Poor consumption will expand any downward room in prices of alumina as raw materials.
President Trump and Chinese President Xi Jinping are to meet for dinner at the G20 meeting in Buenos Aires this weekend. Although President Trump has said he is hopeful for a breakthrough in the trade dispute between the two nations, it looks as though progress will only be made if China gives a lot of ground.
Moreover, Trump’s trade threats are also being pointed at Europe and other trade allies. With so much in the air, this is one of those times when it is probably best to wait for the outcome of the G20 meeting, rather than to try to second guess it.
Needless to say, with the metals’ prices already in low ground the price reaction to constructive news is likely to be greater than to disappointing news, as the latter may already be largely priced in. Last night the US dollar dipped from two-week highs after Federal Reserve Chairman Jerome Powell described US interest rates as “just below” the neutral rate.
Trading Ideas:
–Aluminium trading range for the day is 134.3-137.3.
–Aluminium prices seen supported as greater capacity cuts across aluminium smelters for heating season provided some support.
–A global aluminium producer has offered Japanese buyers a premium of $91 per tonne for primary metal shipments during the January to March quarter.
–For the October-December quarter, Japanese buyers agreed to pay a premium of $103 per tonne, down 22 percent from the prior quarter.
Courtesy: Kedia Commodities
Source: Commodityonline.com
