We saw metals losing their shine this week and trading in
red. Yesterday, we saw all base metals trading in closing due to trade war
conflicts and increase in dollar index.
Earlier today, metals tried to trade in green but I suspect
slow movement today in market.
Base metals opened with some strength this
morning but sellers seems to dominate this market.
We saw spot prices of copper increasing and this is
supporting futures but overall the trend has been negative.
Next week I expect, base metals to trade in red or sideways.
Looking at each metal individually
Copper
Copper has been trading in red and we saw copper trading 9
points down yesterday with a low of low of 446 at MCX. Trend seems to be same
today as well and I don’t expect Copper to see much movement.
I expect copper to trade sideways following a bearish trend.
Despite low inventory on LME, I don’t see much support for prices. If you are
holding a long position, today would be a great day to step out. There is a
chance that copper would touch 454-455 today and then trade again in red making
a low of 445.
Trend is bearish but we might see some upside.
I would suggest selling Copper on highs. Enter a short position
at 454 with target of 445 in upcoming sessions.
Intraday buy trade could be risky.
Aluminium
Aluminium futures are also impacted by LME inventories but I
don’t see much upside. There is a chance of short intraday trade.
Buy at 146.10 for target of 147 and SL of 145. This would be
a quick trade and you can make quick short profits.
Zinc
Zinc has great future! We have seen Zinc trading at oversold
position for last few months and there has been a great movement in Zinc. There
is a great buying opportunity in Zinc
Buy Zinc at 185.50 for target of 187 and SL of 184
Lead
Buy Lead at 145.50 for target of 146.80 and SL of 144.
Nickel
I don’t expect much upside for this counter. Short Nickel
today for a quick trade of 10 points.
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