Copper and other base metals have been struggling amidst
trade war talks. Yesterday all base metals were trading in green zone, trading
in upside zone with limited movement.
The current contract of Copper closed around 434 on MCX yesterday
and was seen trading this morning with some strength. Lack of fresh drivers
kept entire future market stagnant on Wednesday.
Today morning with the release of Chinese trade data, market
saw a little upside movement. Looking at the Chinese trade data, better than
expected news came from China. January’s trade data from China released this
morning showed an increase in export and decrease in imports.
China's January dollar-denominated exports rose 9.1 percent
from a year ago, defying a forecast of a 3.2 percent contraction. China's
imports fell 1.5 percent over the same period, far better than the 10 percent
decline that was expected. China's overall trade surplus of $39.16 billion in
January also beat expectations.
It is quite obvious that Chinese economy is still kicking
and internal reforms are adding boast to the economy but few economist believes
that outlook for this year is down. This is majorly due to slowing in global
growth that would hit exports.
With trade talks moving on an optimistic track we can still
expect traders to be slow this week so I see a range bound trade in all base
metals.
American and Chinese trade negotiators began a new round of
talks in Beijing this week as the world's two largest economies renewed efforts
to reach a deal. Officials from both countries are trying to reach a deal ahead
of a March 1 deadline when U.S. tariffs on $200 billion worth of Chinese
imports are scheduled to increase to 25 percent from 10 percent.
Copper Investing
Copper is expected to trade sideways to upside today.
Investor should enter the market at 435 for target of 440 with stop loss of
432. Traders are advised to create long positions since market trend is
sideways to upside.
Zinc Investing
I expect an upside for Zinc. Buy Zinc at 185.50 for target
of 187 with stop loss of 184. Zinc has been hold around this zone and slight
upside is expected based on technical analysis.
Lead Investing
Lead prices are following Dr. Copper so we can expect a
little upside. Enter long postion at 144 for target of 146 and stop loss of
142.
Read disclaimer before investing
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