to boost economic growth fuelled the expectations among the investors that the demand for crude oil may go up.
For the coming week 5950/5700 will act as major supports levels whereas 6350/6500 will act as major resistance in MCX Crude oil June futures. For the next week, trader can use buy on lower level strategy, if MCX Crude June future sustain above 6112 levels then it could test the levels 6180/6339.
Base Metal: We expect base metal prices to trade on the mixed note as the expectation of weak economic data from US may add downside pressure on the prices. Further, uncertainty about the impact of an investigation into metal financing at China’s third-largest port and worries over LME warehouse court case may lead to the delay in outflows of stock in the market may prove as negative factors for the prices. Whereas, strong Economic data from Europe and China and ECB decision to cut interest rates to boost economic growth fuelled the expectations that the demand for base metal may in range bound.
Trend of MCX Copper June future is in consolidation and also sustaining on lower levels. For the coming week, it could face major resistance of 405/420 whereas 382/368 could be a major support in MCX Copper. For the next week trader may follow sell on higher levels strategy, if MCX Copper future sustain below 395 levels then it could test the level of 390/382.
By Vivek Gupta, Director Research, CapitalVia Global Research Limited