Is this right time for Long positions in base metals?



With concerns of trade war, will this be right time to invest in base metals? 

Most positional traders are waiting for some positive news that could initiate a positive momentum in the market.

The tit for tat trade dispute between US and China is impacting the demand concerns in China which is the worlds’ biggest industrial metal consumer. The recent Chinese manufacturing data was also not quite supportive for base metals.

base metal pack


As mentioned earlier, China has been working on solutions internally to support Yuan and further decrease the impact of Trade-war.

Among all base metals, Dr. Copper is seen scraping bottom and has been playing a lot with traders’ sentiments.

Overall, without any positive news in the market on Trade war, I would suggest positional traders to stay cautious in the market and enter only if you ready to take heavy risk.

Looking at short-term trading strategies, an investor will have to look at different base metals based on their fundamentals.

Copper


Looking at fundamentals and strike at Copper mine in Chile, Copper will trade sideways from 412-422 on MCX. I would suggest to initiate a sell around 421 for target of 415 with SL of 425.50

Zinc

With supply concerns in China and looking at the demand, I believe we could see an upside on Zinc. Investors can see an upside momentum in upcoming trading sessions.

Buy Zinc around 177 with target of 183 and SL of 175. Positional traders (currently holding Zinc or planning to buy Zinc for futures) should enter market at 172 with SL of 167.

Aluminium

With Supply concerns and a slight increase in demand, we can see an upside momentum in Aluminium in upcoming sessions.
Buy Aluminium at 138.50 with target of 142 and SL of 137.

Lead and Nickel

Nickel is one the stable base metals among all others and looking at traders’ sentiments have followed fundamentals and trends.
An investor can go for a long position in Nickel. Buy at 950 with target of 1050 and SL of 870.

Looking at Lead, an investor should buy Lead only above 150. For intraday, sell Lead at 147 with target of 144 and SL of 149.


Is this right time for Long positions in base metals? Is this right time for Long positions in base metals? Reviewed by Olayinka Greatmind on August 06, 2018 Rating: 5

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