Mining giant Xstrata has revealed plans to spend $130 million to extend an open cut zinc mine in north-west Queensland. The company will add another four years to the life of the Black Star Open Cut at the Mount Isa Mine. The Black Star extracts ore from underground mining areas. Zinc yesterday we have seen that market has moved 0.23%.

Market has opened at 106.8 & made a low of 106 versus the day high of 107.65. The total volume for the day was at 23592 lots and the open interest was at 3915. Now support for the zinc is seen at 106.4 and below could see a test of 105.4. Resistance is now likely to be seen at 108, a move above could see prices testing 108.7.

Trading Ideas:

Zinc trading range is 105.4-108.7.

Xstrata to expand Queensland zinc mine

Support for the zinc is at 106.40 and resistance is at 108.

Zinc daily stock at Shanghai exchange came up by 4055 tonnes.

BUY ZINC APR @ 106 SL 105 TGT 106.60-107.20-108.MCX