Supply of zinc in LME warehouses dramatically tightened over past week; since Friday, has been below 10 days' worth for first time since March 2009, based on daily LME stocks divided by cancelled warrants moving out of warehouses. Zinc yesterday we have seen that market has moved -1.29%. Market has opened at 97.15 & made a low of 94.25 versus the day high of 98.05. The total volume for the day was at 39822 lots and the open interest was at 7069.Now support for the zinc is seen at 93.8 and below could see a test of 92.1. Resistance is now likely to be seen at 97.6, a move above could see prices testing 99.7.

Trading Ideas:

Zinc trading range is 92.1-99.7.

Supply of zinc in LME warehouses dramatically tightened over past week

Resistance for zinc is seen at 97.60 and support is at 93.80.

Zinc daily stock at Shanghai exchange remained unchanged.