MCX Market Wrap Up and Trades for Next Week

Market Wrap Up and Trades for Next Week

Updated on 16-Nov-2019 at 10:25 AM

Howdy! Friends ...

MCX markets wrap-up and some selected trading advice for the week - 18-22 Nov 2019.

Natural Gas: After a bull run in Natural Gas and making a recent top of 205.70 in the previous week, natural gas had entered in correction phase and made a bottom of 185.80 on 13-Nov-19. This week was a very tough week for natural gas day-trader due to so many gap-up and gap-down. 

As per chart analysis, it appears that correction has completed in Natural Gas and the main bullish trend will continue in the next coming weeks. Now the Stop-Loss for positional traders should be just below the week low of 185.80 or 185 and should ride the momentum for upside moves. A confirmation has signaled on the weekend, on Friday Naturals gas bounced back from low and touched intraday high 195.30 and managed to close in green. Now after a small retrace/correction of 3-5 points traders can make a long position with stop-loss as mentioned above. Over-all chart of Natural gas is bullish and we can see the price rise beyond 200 and 205 in the coming weeks. Whether you are a positional trader or a day-trader stop-loss must be in every trade, the difference is that day trader should place a tight stop-loss while positional trader with the view of weeks and months should maintain stop-loss as per levels on the chart.

MCX Natural Gas Daily Chart with Elliot-Wave

Zinc: Zinc is trading in narrow bands of 2-3 points intraday moves and can be a preferred trade for small capital traders, they can also trade in Zinc Mini, while most of the mini contract has been scrapped from MCX, for example, Nickel Mini and Copper Mini, Zini Mini is still alive. From the past few days or weeks, MCX Zinc is trading in a perfect channel and we can trade and make a profit in the zinc of approx 2 points daily. In the below chart, you can see the channel and daily moves in Zinc and can easily decide your buy/sell points. 

MCX Zinc Mini - Click on the chart for a full-screen view.

Gold/Silver: We advised selling Gold and silver on the rise. Resistance on  MCX gold near 38500 and price has to decline more in the coming weeks. Trade war negotiation between US and China may dampen the safe-haven demand. While demand in India has declined after the price surge in Gold. It is tough to say about the long term trend in Gold/Silver this time but surely the short term trend is downward ... 

Nickel: MCX has modified the lot size in Nickel contracts from 250 Kgs to 1500 Kgs starting from December 2019 expiry. This means that more margin money needed to trade in the December month contract. 
Nickel is under correction zone and price is falling from the past few days. But Nickel demand is likely to increase and after correction, it may start again bull run.  We have seen that due to the announcement and rumor of the Nickel mining ban by the Indonesian government to take the step early the Nickel price rallied more and the proved to be the best performer in the metals segment of 2019.  

Disclosure: Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate for your financial situation. Only risk capital should be used when trading futures or options. The above article is posted just for knowledge purpose and the site will not be responsible for any loss made on the basis of this post.