Zinc yesterday traded with the negative node and settled -0.75% down at 106. LME zinc prices continued to dip, with prices falling below 30-day moving average and hitting a record low of RMB 2,335/mt in April, but LME zinc prices regained some lost ground supported by purchases, with prices finally climbing above USD 2,400/mt. Positions increased by more than 2,000 lots, an indication of strong support at lower prices. Goldman fraud charge generated market concerns, but Dow Jones Industrial Average has begun to recover, and commodity markets are expected to stabilize pushed up by market sentiment. For today's session market is looking to take support at 104.2, a break below could see a test of 102.3 and where as resistance is now likely to be seen at 107.1, a move above could see prices testing 108.2.

Trading Ideas:

Zinc trading range is 102.3-108.2.

LME zinc prices continued to dip, with prices hitting a record low of RMB 2,335/mt in April

Support for zinc is seen at 104.80 and resistance at 107.20

Zinc daily stock at Shanghai exchange remained unchanged.

BUY ZINC APR @ 105.50 SL 104.50 TGT 106.20-106.90-107.50.MCX