Commodity Trading Tips for Zinc by KediaCommodity

ZincZinc yesterday traded with the negative node and settled -0.1% down at 105.2 overall traded in the range although the pro-bailout New Democracy party won the Greek election, the resolution of European debt crisis did not achieve any substantial progress. Besides, the Spanish 10-year government bond yield surged as high as 7.2%, dragging LME prices to fall. Nevertheless, it was worth noticing that the latest data released by the CFTC showed funds managers still extended their bearish copper bets, with short positions registering the largest since March 2009. In this context, investors should be wary of uncertainty in the European debt crisis and turmoil ignited by the US disappointing economic data. Markets have gradually returned to rational levels following the Greek election and begun doubting about the country's capability to establish a coalition government. Furthermore, while the financing cost in Spain and Italy increased steeply, there is no positive result from the G20 meeting. Investor cautious sentiment thus is dominating markets and will impose great pressures on the euro during the day. For today's session market is looking to take support at 104.7, a break below could see a test of 104.3 and where as resistance is now likely to be seen at 106, a move above could see prices testing 106.9.

Trading Ideas:

Zinc trading range for the day is 104.27-106.87.

Zinc ended weak as market worries over Spain’s debt issues overshadowed the election result in Greece

Yield of Spanish 10-year government bonds marked a new high, suggesting that the outlook for Europe remains pessimistic

Zinc daily stocks at Shanghai exchange came up by 127 tonnes