With concerns of trade war, will this be right time to
invest in base metals?
Most positional traders are waiting for some positive
news that could initiate a positive momentum in the market.
The tit for tat trade dispute between US and China is impacting
the demand concerns in China which is the worlds’ biggest industrial metal
consumer. The recent Chinese manufacturing data was also not quite supportive
for base metals.
As mentioned earlier, China has been working on
solutions internally to support Yuan and further decrease the impact of
Trade-war.
Among all base metals, Dr. Copper is seen scraping bottom
and has been playing a lot with traders’ sentiments.
Overall, without any positive news in the market on Trade
war, I would suggest positional traders to stay cautious in the market and enter only if you ready to take heavy risk.
Looking at short-term trading strategies, an investor will have
to look at different base metals based on their fundamentals.
Copper
Looking at fundamentals and strike at Copper mine in Chile,
Copper will trade sideways from 412-422 on MCX. I would suggest to initiate a
sell around 421 for target of 415 with SL of 425.50
Zinc
With supply concerns in China and looking at the demand, I
believe we could see an upside on Zinc. Investors can see an upside momentum in
upcoming trading sessions.
Buy Zinc around 177 with target of 183 and SL of 175. Positional
traders (currently holding Zinc or planning to buy Zinc for futures) should
enter market at 172 with SL of 167.
Aluminium
With Supply concerns and a slight increase in demand, we can
see an upside momentum in Aluminium in upcoming sessions.
Buy Aluminium at 138.50 with target of 142 and SL of 137.
Lead and Nickel
Nickel is one the stable base metals among all others and
looking at traders’ sentiments have followed fundamentals and trends.
An investor can go for a long position in Nickel. Buy at 950 with target of 1050 and SL of 870.
Looking at Lead, an investor should buy Lead only above 150.
For intraday, sell Lead at 147 with target of 144 and SL of 149.
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