US – China trade has heavily impacted Copper and other base
metals. All metals have lost shine and are barely surviving with minimum
support.
Looking at all emerging markets, most currencies including
Indian Rupee has seen a decline. Chinese Yuan also suffered a lot but we now
can anticipate a little stability.
China & U.S have seen impacts of trade war and other
sanctions imposed by President Trump. As per Axios.com, escalation of trade war
can impact 11 million job and it would affect growing industries in US. Click
here to read more.
We saw all base metals trading sideways on Monday and
decline in INR did play a role. Looking at current sentiments, all base metals
are trading lower and it is sellers’ market.
We can expect sellers to dominate market for few up coming
sessions so for all base metals, strategy should be sell on rise.
Most traders feel that each individual base metals are
following their won fundamentals but we have seen all base metals trading in
range.
Market will have a different sentiments or could continue
the same way after 6th September but I suspect a range bound trade
for few weeks.
Overall, the trend is negative and we would see metals
re-testing support levels.
Copper
Copper is trading range bound and we can see it moving from
417 to 425. I would not advise to buy in this market so selling around 421 for
target of 418 would be a great trade.
Aluminium
I foresee aluminium also following a bearish trend. One can
enter into a short position today around 148.50 for target of 146 in upcoming
session with strict SL of 149.70
Nickel
Nickel has been bearish in past few sessions and I expect
trend to continue.
0 Comments
Leave your comments below.