Copper and base metals have been trading in green this week
since Monday. We saw a bullish traders ready to take risk and enter the market
with optimism.
Current contract of Copper was seen trading at 451 to 451
yesterday. Other base metals have been following positive trend and MCX
commodities were spreading greenery all around.
Generatebucks - Copper and Base metals |
MCX commodities majorly follow LME and global trends.
Yesterday copper prices rose to a new two month high in London after the
US-China trade talks were seen moving in positive direction. US president Donald
Trump said on Tuesday talks with China, currently taking place in Washington,
were going well and suggested he was open to pushing off the deadline to
complete negotiations, saying March 1 was not a "magical" date.Click here
The main reason behind the price recovery and optimism in
the market is due to the movement in trade talks. This could affect base metals
in any way. Trends could reverse if we see no possible outcomes from trade
discussions between the two countries.
Individual base metals
Copper
Copper closed at 452 yesterday on MCX. Traders have been
bullish the metal will experience a deficit market this year are beginning and
this might override concerns that a trade-war induced decline in global growth
will impact copper demand.
Copper Investing – Buy Copper at 451 for target of 460-461
in upcoming sessions with stop loss of 445. The trend is positive due to trade
talks moving in positive direction, this might change if some negative news
come into the market.
Zinc
Zinc closed around 191 on MCX yesterday and based on the
fundamentals, we might see Zinc trading at levels of 200 again. I expect Zinc
to follow a bullish trend for few upcoming sessions.
Zinc Investing – Buy Zinc at 193 for target of 195 in upcoming
sessions with a stop loss of 185. Zinc has a key support zone of 182 and this
is a great level for buyers to enter for a positional trade
From a long term perspective, Zinc is a great commodity to
invest since demand is expected to grow and this market will have supply
issues.
Nickel
Nickel is in demand and we have seen a big rally in last few
sessions. I foresee Nickel to follow the trend and nickel prices to touch 1150
in coming months. If the trade talk move well, every base metal will rally and
traders can expect more from Nickel looking at the demand.
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