As mentioned yesterday on Generatebucks trading tips for base metals, we saw little movement in the market and most of traders who follow us made quick profits with short trades.
It seems market has started discounted all negative news and we can see buyer dominating the market. All negative news including trade war is already discounted and traders are following
positive sentiments.
Yesterday, we saw Copper November contract closing at 459 on
MCX. The market opened 5 points down on MCX today because there was less movement in
the global market.
This week market is expected to follow mix trend and one should look at short trades to making profits. Most positional investors are expecting prices to touch 470 but I feel that it is too much to expect this
week.
Looking at Copper, I expect Copper prices to follow a positive
trend after a small correction, so we can expect a rally after a dip.
Copper prices might hover from 453 to 465 this week.
Looking at individual base metals – Copper, Aluminium, Zinc and Nickel
Copper
Copper has been following mix trend and we saw Copper
closing at 459 yesterday on MCX with high of 463. Copper is expected to trade
sideways to bullish today. There is a correction expected and so I would advise
a buying on dips since this is a buyers’ market.
Initiate a buy at 452 with target of 459 and SL of 449.
If you are holding a short position, please exit around 460 as market has positive sentiment and might not turn bearish this week.
Zinc
We saw Zinc trading at 169 levels earlier this month and
despite inventory issues, this has been a sellers’ market. One of traders following
this blog has invested in Zinc in August at 190 levels and did book losses since
trade war played a negative role for Zinc. Zinc was trading in an over sold zone for a long time.
Things changed when we saw buyer dominating this
market and Zinc breaking its resistance mark. In near future this counter could be seen trading around 210 levels
I would advise a positional as well as intra-day long position in Zinc with target of 186 -191 in coming sessions.
Nickel
Yesterday this counter closed at 929 and we saw an upside
trend. I would advise a short trade in Nickel today. Buying on dips will be a
great strategy for Nickel.
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