Commodity Trading Tips for Zinc by KediaCommodity

Commodity Trading Tips for Zinc by KediaCommodityZinc yesterday traded with the negative node and settled -0.05% down at 104.00 tracking LME zinc prices which overnight opened at USD 1,868/mt, and edged up to USD 1,891/mt due to the strong Shanghai Composite Index. The market was expecting European central bank and Bank of England will announce to lower interest rates at the policy meeting taking place on Thursday, and US Commerce Department announced finished product orders during May rose 0.7%, 0.1% higher than expected. As a result, LME zinc prices continued to rise, touching an intraday high USD 1,932/mt. LME base metals extended their increases and closed higher overnight. Market is attentive to the actions of ECB after signal of stimulating growth were sent from the EU summit. May PPI data released by Eurostat indicated continuous decline in inflation and offered room for ECB to further lower interest rate. ECB will release its decision on interest rate Thursday night. Most market players expect ECB will cut interest rate by 25 basis points. Market expectations drove base metals to rise. In yesterday's trading session zinc has touched the low of 103.55 after opening at 104.25, and finally settled at 104. For today's session market is looking to take support at 103.4, a break below could see a test of 102.7 and where as resistance is now likely to be seen at 104.8, a move above could see prices testing 105.6.

Trading Ideas:

Zinc trading range for the day is 102.73-105.63.

Zinc remained flat as market was expecting ECB and BoE will announce to lower interest rates on Thursday

Market is attentive to the actions of ECB after signal of stimulating growth were sent from the EU summit

Zinc daily stocks at Shanghai exchange came down by 250 tonnes