MCX Copper may trade in a range between 439.9-447.3
MCX Nickel under fresh selling; Resistance seen at 777.4
MCX Aluminium under fresh selling; Support seen at 137.8
MCX Mentha Oil under long liquidation
Natural Gas market under long liquidation; Support seen at 290.6
Technically Zinc market is under long liquidation as market has witnessed drop in open interest by 10.62% to settled at 2659 while prices down 3.95 rupees.
Now Zinc is getting support at 185.6 and below same could see a test of 184.2 levels and resistance is now likely to be seen at 189.4, a move above could see prices testing 191.8.
Zinc on MCX settled down -2.07% at 186.8 as the greenback hovered near its one-month high on a rebound in U.S. bond yields and weakness of the pound amid extended Brexit uncertainty. Investors shrugged off upbeat comments from U.S. President Donald Trump about a potential trade deal with China, while the dollar hovered near a one-month peak against its peers.
Trump said he would intervene in the Justice Department’s case against a top executive at China’s Huawei Technologies if doing so would help close a trade deal. The Federal Reserve widely expected to raise interest rates at its upcoming meeting.
U.S. rates may be nearing a peak, but relative rate differentials still offer some support for the dollar. China’s banks extended more new loans than expected in November after a sharp drop the previous month, in a sign that recent government pressure on lenders to help struggling smaller firms may be starting to bear fruit.
While demand weakened, supply bottlenecks kept China’s overall inventories of refined zinc at record lows. social inventories of refined zinc across Shanghai, Guangdong and Tianjin stood at 108,400 mt with stocks in Shanghai-bonded warehouses at 44,000 mt, data showed.
As increasingly colder weather forces miners in Inner Mongolia, Xinjiang and Tibet to cut output, TCs are likely to see limited upside room. Despite previous gains in TCs, refined zinc output failed to grow significantly as environmental issues deterred smelters from ramping up production.
Trading Ideas:
–Zinc trading range for the day is 184.2-191.8.
–Zinc dropped as the greenback hovered near its one-month high on a rebound in U.S. bond yields and weakness of the pound amid extended Brexit uncertainty.
–While demand weakened, supply bottlenecks kept China’s overall inventories of refined zinc at record lows.
–Social inventories of refined zinc across Shanghai, Guangdong and Tianjin stood at 108,400 mt with stocks in Shanghai-bonded warehouses at 44,000 mt, data showed.
Courtesy: Kedia Commodities
Source: Commodityonline.com
