Trading tips for 23rd August – base metals – Buy Zinc and Sell Copper

It seems that this season has been worst for metals with Zinc falling 26% and Lead falling around 20%.

Trade tensions have been impacting commodities around the globe and with tariffs kicking in officially, we can expect these tensions to continue.

As per latest from CNN “The Trump administration's latest round of tariffs on Chinese goods kicked in Thursday, drawing immediate retaliation from Beijing.” Click here to read more.

With President Trump releasing a statement saying that he did not "anticipate much" from the discussions, which involve lower level officials than in previous rounds. Resolving the dispute will "take time because China's done too well for too long, and they've become spoiled. Read more 

Market does take every statement into account and traders have been reacting based on them.

On the other hand, Chinese producers and trading are pushing the physical prices to new highs to avoid import tariffs. Read more here

Looking at dollar index, we might see it touching 96 this week. With fall in Rupee and other emerging market currencies, we can expect most commodities to follow a downtrend.

Looking at individual base metals today


Copper is currently trading at 407 and we can expect it continue downtrend. Looking at fundamentals and technical charts, Copper is a good commodity to sell. We can expect Copper prices to touch 401-402 today.
Sell Copper at 407 with target 404-403 and SL of 410


Zinc is looking positive and have bottomed out. For intraday buy Zinc at 171 for target of 173-174 and SL of 169.
Positional traders should and enter market at 167-168.


Sell Lead at 141 for target of 139 and SL 144


Great commodity to sell on any high. Sell Nickel at 935 for target of 929 and SL of 943

Disclaimer - 

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