basemetals intraday

Base Metals


Major Economic Data:

The U.S. Census Bureau said that exports were down $2.6 billion in March, to $148.5 billion while imports were down $6.1 billion to $206.7 billion. The result was $58.2 billion of net imports, less than expected. The June U.S. dollar index closed down .44 at 73.22.

Key Economic Data Expected:

No major US Data expected today.

Copper

Copper headed for a second weekly drop inLondon as rising stockpiles indicatedChina, the world's largest user, slowed purchases because of near-record prices. Tin rose to an all-time high and lead fell to almost a one-year low.

Shanghai copper stockpiles rose for the first week in four, increasing 10 percent, the Shanghai Futures Exchange said in a report today on its Web site. Inventories, based on a survey of five warehouses monitored by the Shanghai Futures Exchange, climbed by 4,646 metric tons to 51,119 tons this week, the exchange said.

Copper warehouse stock at LME, net change was 11150 MT to 121275 MT

Hedge-fund managers and other large speculators increased their net-long position inNew York copper futures in the week ended May 6, according to U.S. Commodity Futures Trading Commission data. Speculative long positions, or bets prices will rise, outnumbered short positions by 7,194 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions rose by 630 contracts, or 10 percent,from a week earlier.

Codelco, the world's biggest copper producer, resumed full production at its Andina mine in central Chile for the first time since a strike shut it on April 16.Codelco's El Salvador mine, one of three affected by the walkout and related protests, still is operating at reduced capacity. El Teniente, the third affected mine, is running at full output, a company official said in a telephone interview inSantiago today.

Peru's miners suspended a national strike planned for May 12 to give Congress time to pass legislation on a greater share of profits, higher pensions and rights for subcontracted workers, a union spokesman said today.

MCX Copper June - Technical Outlook:

The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from overbought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive.

Market is expected to remain negative and the support is seen at 335.6 If market breaches below 335.6 may see prices to take further correction towards 331.2 and 326.1,However if it holds back above 345.1 may see prices to rise further on today. Major resistance is seen at 350.2 and 354.6

Recommendations-MCX Copper June: Sell at 341-340 Target 336 and 332 SL 345.50



Nickel

MCX Nickel May feel towards the low of 1101 on Friday and closed at 1115 following a fall in Lead and Copper prices.

Jinchuan Group Co.,Asia's biggest nickel producer, lowered the price of the refined metal because of slowing demand for use in stainless steel. The price was cut by 7,000 yuan, or 3 percent, to 228,000 yuan ($32,560) a metric ton effective today, according to a statement on the Web site of theGansu, western China-based company.

Nickel warehouse stock at LME, net change was –132 MT to 50898 MT

MCX Nickel May -Technical Outlook:

The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from overbought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive.

Market is expected to remain negative and the support is seen at 1095.3 If market breaches below 1095.3 may see prices to take further correction towards 1075.7 and 1050.3,However if it holds back above 1140.3 may see prices to rise further on today. Major resistance is seen at 1165.7 and 1185.3

Recommendations:MCX Nickel May: Sell at 1120-23 Target 1095 and 1080 SL 1138



Zinc

MCX Zinc may drop towards the low of 89.15 following bearish sentiment in at LME and increased warehouse stock at LME and SHFE. Market pushed towards more down due to heavy fall in Lead prices.

Zinc stockpiles added 70 tons to 70,384 tons, based on a survey of seven warehouses inShanghai.

Zinc warehouse stock at LME, net change was 25 MT to 125750 MT

MCX Zinc May -Technical Outlook:

The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from overbought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive.

Market is expected to remain negative and the support is seen at 88.4 If market breaches below 88.4 may see prices to take further correction towards 87.2 and 85.2,However if it holds back above 91.7 may see prices to rise further on today. Major resistance is seen at 93.7 and 94.9

Recommendations-MCX Zinc May: Sell at 91-90.50 Target 88.50 and 87 SL 91.80



Lead

MCX Lead dropped towards the low of 91.85 following bearish sentiment at LME and other metals. LME inventory also supported the move.

Lead fell to the lowest in almost one year on the London Metal Exchange. The contract for delivery in three months declined as much as $115, or 5 percent, to $2,205 a metric ton, the lowest intra day price sinceMay 29, 2007. It traded at $2,225 a ton

Lead warehouse stock at LME, net change was 175 MT to 58600 MT



MCX Lead May -Technical outlook:

The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from overbought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive.

Market is expected to remain negative and the support is seen at 89.6 If market breaches below 89.6 may see prices to take further correction towards 87.4 and 83.1,However if it holds back above 96.1 may see prices to rise further on today. Major resistance is seen at 100.4 and 102.6

Recommendations –MCX Lead May: Sell at 93-93.50 Target 89 and 88 SL 94.80



Aluminium

MCX Aluminium remained negative following bearish movement at LME and other metals. Market treaded towards the low of 116.90 at stockpile at SHFE increased heavily last week.

Stockpiles of aluminium rose 0.8 percent, or 1,378 tons, to 182,196 tons, based on a survey of 11 warehouses inShanghai.

Aluminium warehouse stock at LME, net change was –1250 MT to 1037100 MT

MCX Aluminium May -Technical outlook:

The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from overbought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive.

Market is expected to remain negative and the support is seen at 117.1 If market breaches below 117.1 may see prices to take further correction towards 115.9 and 114.8,However if it holds back above 119.4 may see prices to rise further on today. Major resistance is seen at 120.5 and 121.7

Recommendations–MCX Aluminium May: Sell at 119 Target 116 and 115 SL 120.40

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