Commodity Trading Tips for Zinc by KediaCommodity

ZincZinc yesterday traded with the positive node and settled 0.24% up at 103.85 tracking LME zinc prices opened higher at $1,905.8/mt during Asian trading hours last Friday and plunged despite China's central bank lowered interest rates. As the US dollar index rose in the morning session, LME zinc prices continued to drop. Due to better-than-expected US retail sales and inventories data, LME zinc prices stopped declines and rose slightly, but slid later the day to an intraday low at $1,866/mt, and finally closed at $1,869/mt, down $34.8/mt. Germany's import and export data were both lower than expected or previous, while Italy's seasonally adjusted industrial output was also lower, showing eurozone economy is shrinking. As a result, the euro plunged, pushing down LME prices. Concerns about Spain's banks have grown since Bankia, the country's fourth-largest lender, said last month it needed EUR19 billion in state aid to shore itself up against bad loans. In yesterday's trading session zinc has touched the low of 103.65 after opening at 103.75, and finally settled at 103.85. For today's session market is looking to take support at 103.7, a break below could see a test of 103.6 and where as resistance is now likely to be seen at 103.9, a move above could see prices testing 104.

Trading Ideas:

Zinc trading range for the day is 103.58-103.98.

Zinc yesterday traded with the positive node and settled 0.24% up after China's central bank lowered interest rates.

Concerns about Spain's banks have grown since Bankia said last month it needed EUR19 billion in state aid to shore itself up against bad loans.

Zinc weekly stocks at Shanghai exchange came down by 3215 tonnes