Breaking

Thursday, August 16, 2018

Base metals on MCX- trading tips for August 16th



We got independence on 15th August and the affect was such that all base metals and currencies around the world decided to fall freely. We saw decline of 3% in Copper prices and Zinc almost bottom out in international market.

As mentioned on Tuesday (read here), market is good to enter if you are looking to make quick bucks but for positional trade this is not a good market unless you are willing to take huge risks.

Today morning, we saw Copper prices falling to 402.55, Zinc around 165, Nickel and lead around 915 and 139 respectively. Most investors reacted to the negative sentiments due to market contagion from the currency crisis in Turkey and slow growth of Chinese economy.

The news that strike in Chile could be averted also played a major role in allowing copper prices to fall. Currently looking at MCX, we see Copper trading around 406 and most metals have been upside but there is no positive fundamentals.

Falling Copper prices

Falling Copper Prices

Copper prices have entered a bear market, falling more than 20% from a near four year hike. Read more here.

Traders are expecting base metals to continue bearish trend despite touching bottom levels. For positional traders or traders caught on wrong side of the market, I would advise to wait since we could see slight recovery from here. This might allow traders to reduce their loss.

With Indian Rupee falling to 70.40 today, we saw no support for base metals on MCX.

Copper

Copper has been trusted barometer of world’s economies. With Copper prices falling around 3%, traders expect more downtrend. The news of strike in Chile being averted also played a role and we saw no support for copper.

For Intraday one can initiate short positions. Short Copper at 407 (average around 409) for target of 402-401 and SL of 410.

Copper is currently bearish and we might see 390-395 levels in upcoming sessions on MCX. 

Although, we are currently at oversold level and trend might change only if trade war tensions eases.

Zinc

Zinc has bottom out but we have heard this earlier for Zinc. Buying position in Zinc is quite risky right now.

Zinc will now be range bound for few weeks till we see anything positive. For short –term trade, initiate short positions at 169 for target of 164.50 and SL of 172.

Nickel

A few weeks back Nickel was seen performing quite well despite trade tensions but we saw decline in prices. We can expect to see 850 levels in Nickel in upcoming sessions so initiating a short at this position will be advisable.

Aluminium


Aluminium could see some recovery and we can expect prices to touch 145 in evening session today. For intraday, buy Aluminium at 142 with target of 143.50 and SL of 139.

For any queries, please email us here


No comments:

Post a Comment