All base metals were seen under pressure this morning. Copper slipped around 0.5 percent on LME.

With China announcing retaliation plans on tariff planned by US, entire metal pack saw a downtrend.With no positive news or any negotiations news, all base metals might see a new low.

Prices are also seen testing their resistance zone and most investors are looking for short-term positions. As mentioned, this market is not for positional traders and one should be very cautious trading in these volatile market.

I foresee market trading sideways and investors should look at initiating long positions with strict SL as base metal pack is strongly reacting to the trade-war.

I would advise an investor to jump with long position in Copper around 414.50 with strict SL of 411.50 with a target of 421.50 – 423.

Copper has key support at 407-410 and a resistance at 427 for August contract. There is strong chance for Copper to turn bullish if any supporting news related to strike at mines or any positive news related to trade war negotiations

base metals for August 6th
Trading Techniques in base metals - Generatebucks.com


Zinc


Looking at Zinc and supply deficit, Long position could be initiated in Zinc at 176.50 with SL of 174 
and target of 181.50

Aluminium


This is a great time for Intraday traders to invest in Aluminium. This base metal could be considered a golden goose looking at profits of Aluminium gaint, Rusal. Despite sanctions from US, Rusal posted profits.

The firm today gave a statements saying “trade wars and imposed import duties, together with the Ofac Sanctions, have caused significant growth of premiums and prices increasing total costs incurred by consumers of aluminium.”

I would suggest a long position for Intraday traders at 139.50 with target of 140 -141 and SL of 138.50

Intraday trading tips –


Buy Copper at 414.50 with strict SL of 411.50 with a target of 421.50 – 423.

Buy Zinc at 176.50 with SL of 174 and target of 181.50

Buy Aluminium at 139.50 with target of 140 -141 and SL of 138.50


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