MARKET OUTLOOK OF BASE METALS 08 JAN 2016

“SELL ZNIC BELOW 100.20 TG 99.20,98 SL 101”

“BUY COPPER FEB CONTRACT 301 TG 305,308 SL 298”

 China's stock markets were suspended for the day less than half an hour after opening as a new circuit-breaking mechanism was tripped for a second time this week. Shanghai stocks slid 7.3 percent to trigger the halt, a repeat of Monday's losses. Data published this week showed China's manufacturing sector shrank for the 10th month running in December, while activity in services fell to a 17-month low. China's central bank allowed the Yuan to fall to its lowest level against the dollar since March 2011, a move analysts said was an acknowledgement of weak growth.

The above is hourly chart of Copper. It suggests that prices are taking support somewhere near 296-299 zones. It is expected to give pullback before further fresh down move. On upside, resistance is located around 305.90 levels.

COPPER:

The above is hourly chart of Copper. It suggest that prices are taking support somewhere near 296-299 zone. It is expected to give pullback before further fresh down move. On upside, resistance is located around 305.90 levels.

ZINC:

The above is hourly chart of Zinc which suggests that prices are recovering on the upside after losing more than 3.5 percent in the previous session. On downside, immediate support is located at 99.30 levels.

NICKEL:

The above hourly chart of Nickel suggests that prices are trading in downtrend. However, some pullback on upside is expected in today's session. It has potential to recover back on the upside till 576 levels. On downside, immediate support is located at 552 levels.

ALUMINIUM:

The above hourly chart of Aluminium suggests that prices are likely to give breakout on the upside. Momentum indicator RSI is pointing for the upside. Hence, prices should cross immediate resistance of 99.50 levels, for upside target of 102.30 levels.

LEAD:

The above hourly chart of Lead suggests that prices have given breakout on the upside. It is expected to recover back at least till 112.90 levels. On downside, immediate support is located around 109.60 levels.