China sold almost all of the 50,000 tonnes of zinc put up for sale at an auction of state reserves, with an average sale price of 19,511 yuan per tonne, the State Reserves Bureau said. That is slightly lower than the most actively traded Shanghai zinc futures contract, for February 2011 delivery, and about 1,000 yuan per tonne lower than the spot price. Zinc yesterday we have seen that market has moved 0.74%. Market has opened at 106.2 & made a low of 106.2 versus the day high of 107.7. The total volume for the day was at 1492 lots and the open interest was at 7084.Now support for the zinc is seen at 106.6 and below could see a test of 105.7. Resistance is now likely to be seen at 108.1, a move above could see prices testing 108.7.

Trading Ideas:

Zinc trading range is 105.7-108.7.

China sold almost all of the 50,000 tonnes of zinc put up for sale at an auction of state reserves

Zinc looks to take support at 106.40 and resistance at 108.70.

Zinc weekly stocks at Shanghai exchange came up by 4093 tonnes.