The rise in Zinc surplus is expected to pose pressure on the prices of metal in coming days. The surplus of refined Zinc stood at 360000 tonnes in Jan-Oct 2010 as per the report from World Bureau Of Metal Statistics (WBMS). Zinc yesterday we have seen that market has moved 0.38%. Market has opened at 103.5 & made a low of 103.2 versus the day high of 104.7. The total volume for the day was at 17219 lots and the open interest was at 8737.Now support for the zinc is seen at 103.4 and below could see a test of 102.5. Resistance is now likely to be seen at 104.9, a move above could see prices testing 105.5.

Trading Ideas:

Zinc trading range is 102.5-105.5.

The rise in Zinc surplus is expected to pose pressure on the prices

Zinc looks to take support at 103.40 and resistance at 104.90.

Zinc daily stocks at Shanghai exchange came up by 1435 tonnes.