Aluminium futures on the MCX platform were trading at Rs167/kg . It settled higher at Rs159.25 on last week, from the previous closing price of Rs155.50. From last couple of weeks prices have been traded higher and now the prices are trading above the 18-days moving averages of Rs155. The short to medium term channel resistance of 158 is already breached on previous month and now well sustained above the 18 days moving averages of 155. Now, it breached next immediate resistance of 165.50, sustainable trade above it will see the good move towards Rs172/175 and if it breaks the immediate support line of Rs155 then it will see the downside move towards Rs150/145 respectively. Overall the commodity is expected to move higher from its support level. Thus we recommend buy on dips in the current month.
Copper futures on the MCX platform were trading at Rs586/kg from previous week’s closing of Rs558.80 and also made the life time high. Since last couple of weeks prices are trading higher from Rs494.80 levels to Rs578.70 and the prices are already taken the correction from Rs549.05 to 494.80 which was the Fibonacci retracement of 23.6% exactly and now prices has been bounced from 494.80 to 578.70 and well sustained above the trend line resistance of 550 respectively. Now, the immediate resistance is seen at 580. If the price will sustain above the immediate next resistance line of 580 it will continue to move upside towards 600 and break above it will see further upside towards 625/650 very soon. If the price sustain below the support line of 550 can see the down side move towards 535/520 levels in the near term basis.
Lead futures on the MCX platform were trading at Rs161/kg from the previous week’s closing of Rs157.95. At present prices are trading above the daily 18-EMA levels of 155.The Momentum Oscillator Stochastic (14,3,3) is now witnessing positive divergence and also providing bullish trend for short to medium term basis. The 50 days EMA sustained on the higher side which is indicate buying in short term basis. So, overall the commodity is expected to move higher from its support level of 155. Now, the crucial resistance is seen at Rs163, sustainable trade above this level will see the good upside move towards Rs170/175 in this month and if the prices has sustain below Rs155 levels then can see the downside/ correction move towards 150/145 respectively.
Nickel futures on the MCX platform were trading at Rs1,209/kg from the previous week’s close of Rs1212.50. At present prices are trading above the weekly 50 EMA levels of Rs1,200 and also above 200 EMA levels of Rs1,180. The Momentum weekly Oscillator MACD is trading above the resistance line of Rs1,200, witnessing bullish crossover. Buying can be seen again in the counter if it continues to trade above Rs1,200 levels, which take the counter towards Rs1,265/1300 respectively. If it break below the support line of Rs1,180 levels and sustain can see further down side move towards Rs1,160/1140 levels in short term basis. Overall the commodity is expected to move higher from its support level.
Zinc futures on the MCX platform were trading at Rs220.85/kg from the previous week’s close of Rs225.30. From last couple of weeks, prices were trading higher from its low of Rs181.20 to 225.95. At present prices are trading above the daily 200EMA levels 215 and above the weekly rising trend line resistance levels of 208. The long term trend is bullish only and we have already seen the correction last month from 209.05 to 199.70, if it sustain below 208 levels will see the downside move towards 200/195 and if it trade above 233.65 levels will see further upside move towards 250/265 respectively as the next immediate resistance is seen at 233.65. But the view will be intact until the recent low 208 is not interrupted.
The writer is a senior analyst (metals) at SMC Global Securities Ltd