This week base metals have been trading in green and we can see new support for each of them. Looking at the global trends and fundamentals in the market, it seems metals have a strong support and are trading in consolidated mode.

Base metals on Shanghai Futures Exchange gave mixed performance today morning. Read more here.

Looking at currency market this morning, Indian Rupee touched new low and was trading at 70.50 this morning. Most investors and financial analysts are expecting Rupee to depreciate further and based on this we might see more volatility in base metal pack.

The re-negotiated NAFTA agreement between US and Mexico also acted as positive trigger and it is expected for Canada to come to agreement with new terms.

Based on the recent release from Morgan Stanley “Trade war won’t cause any ‘major’ hit to China’s economy. Click here to read more

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Looking at current fundamentals and updates production news, it is evident that US economy would also see a stability in GDP. This would definitely act as positive news for base metals.

Looking at individual base metals


Copper

Copper is expected to hover from 420 to 427 today and this would be a good range for traders to play.

Initiate Long position in Copper at 421.50 for target of 424-426 and SL of 419.50. High risk traders could wait for 427-429. These targets will be seen this week so be ready to hold your position for upcoming sessions

Zinc

I have seen Zinc prices moving upside in past few sessions majorly due to supply concerns and this trend could continue this week.

Zinc prices are expected to move upside till 185 which is major resistance and so currently it is expected buyers to rule. I don’t expect Zinc to rally much since sellers might jump in towards resistance level.

 Buy Zinc at 178 for target of 180-182 in upcoming sessions. Keep strict SL of 176.

Nickel

I don’t see much upside for Nickel, unlike other analyst and would advise investors to wait until this week. If you are holding a position on buy side, would advise you to wait since we might see a short rally upside till 965

Aluminium

Aluminium has been least affected by trade war and is good to trade today. I have a bullish view for Aluminium. I expect the upside till 155 in upcoming sessions.