Copper which dominates the base metal pack has been seen
scraping bottoms, falling around 20% in last 2 months from 499 to 409 on MCX.
Due to extensive use of copper in industrial production, manufacturing
and consumer goods, price movement of copper is consider to be a barometer of
global economy.
Base metal - how to trade today? |
US-China trade war and tightening of monetary policy by global
central bank are major factors that affect global growth and positivity in the
market.
Following copper all base metals were seen falling for record
high to record low in span of around 3- months majorly due to trade war and
less demand from China.
After US planning to impose around 25% tariff on Chinese
goods, China is looking to retaliate and respond to US. A strong dollar index
as well has impacted the demand of base metals.
Early this week, trader were expecting copper prices to get
support due to supply disruptions at Escondida. The workers’ union at Escondida
indicated that strike for atleast 30 days but news of the trade war weigh
heavily on prices. Most trades were advised to exit from their long positions.
Being the last day of the week, I suspect a slight bounce in
base metal pack if they break immediate resistance.
Intraday trade tips –
- Sell Copper below 415 with target of 409.70 and SL of 418.50
- Sell Nickel below 920 with target of 890 and SL of 932
- Sell Zinc below 176.50 with target of 175 and SL of 179
- High risk traders could initiate long positions in Copper above 419 with target of 422 and In Zinc above 179.50 with target of 181.
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