Base metals - How to trade today?

Copper which dominates the base metal pack has been seen scraping bottoms, falling around 20% in last 2 months from 499 to 409 on MCX.

Due to extensive use of copper in industrial production, manufacturing and consumer goods, price movement of copper is consider to be a barometer of global economy.

Base metals - how to trade today
Base metal - how to trade today? 
US-China trade war and tightening of monetary policy by global central bank are major factors that affect global growth and positivity in the market.

Following copper all base metals were seen falling for record high to record low in span of around 3- months majorly due to trade war and less demand from China.

After US planning to impose around 25% tariff on Chinese goods, China is looking to retaliate and respond to US. A strong dollar index as well has impacted the demand of base metals.

Early this week, trader were expecting copper prices to get support due to supply disruptions at Escondida. The workers’ union at Escondida indicated that strike for atleast 30 days but news of the trade war weigh heavily on prices. Most trades were advised to exit from their long positions.

Being the last day of the week, I suspect a slight bounce in base metal pack if they break immediate resistance.

Intraday trade tips –

  • Sell Copper below 415 with target of 409.70 and SL of 418.50
  • Sell Nickel below 920 with target of 890 and SL of 932
  • Sell Zinc below 176.50 with target of 175 and SL of 179
  • High risk traders could initiate long positions in Copper above 419 with target of 422 and In Zinc above 179.50 with target of 181.

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