MCX Zinc under fresh selling; Support seen at 182.6
Commodity Online | August 19 2019
UPDATED 09:50:57 IST

MCX Mentha Oil likely to move in a range of 1282.2-1307.6

MCX Aluminium under fresh selling; Support seen at 139.3

MCX Nickel likely to move in a range of 1212.7-1305.1

NCDEX Chana under short covering; Resistance seen at 4089

MCX Zinc under long liquidation; Resistance seen at 187.3

Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 2.84% to settled at 3298 while prices down 0.85 rupees.

Now MCX Zinc is getting support at 182.6 and below same could see a test of 181.5 level, and resistance is now likely to be seen at 185, a move above could see prices testing 186.3. 

Zinc on MCX settled down 0.46% at 183.55 amid conflicting messages about the ongoing trade discussions between the United States and China. U.S. President Donald Trump said that U.S. and Chinese negotiators were holding ?productive? trade talks and expected them to meet in September.

Meanwhile, China vowed to counter the latest U.S. tariffs but called on the United States to meet it halfway on a potential trade deal. Refined zinc metal production reached 5.39 million tons, down from 5.45 million tons the previous year. May production reached 1.12 million tons, up from 1.11 million tons in April. Refined production increases in Mexico and Peru were canceled out by declines in Canada, China, India and Russia.

US President Donald Trump unexpectedly announced a delay in the imposition of a further 10% tariff on a number of Chinese goods until December 15, fueling hopes for a trade deal between the two countries. The International Lead & Zinc Study Group (ILZSG) reported the total zinc deficit in the first five months of 2019 has ballooned to 123,000 tonnes, considerably higher than the previous year's deficit of 103,000 tonnes.

The deficit emerged despite a 0.6% decline in global consumption and continues to reflect supply-side challenges for zinc. The focus now shifts to the Jackson Hole symposium. Fed Chair Powell's comments will be closely watched for fresh hints on the interest rates outlook amid heightened concerns over the potential for a recession and an ongoing U.S.-China trade spat.

Trading Ideas:
--Zinc trading range for the day is 181.5-186.3.
--Zinc prices dropped amid conflicting messages about the ongoing trade discussions between the United States and China.
--US President Donald Trump unexpectedly announced a delay in the imposition of a further 10% tariff on a number of Chinese goods until December 15.
--China vowed to counter the latest U.S. tariffs but called on the United States to meet it halfway on a potential trade deal.

Courtesy: Kedia Commodities

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