Zinc settled -1.06% down at 104.05 as pressure seen after Japan's revised industrial production falling 4.1 percent, unchanged from earlier readings, but still a disappointing number that will not have been helped by the strength of the yen, nor their spat with China. In China, the world's largest consumer of base metal, concerns remained about the outlook for demand which has remained sluggish this year, but traders did not expect to see a big sell-off. Prices for the metal rallied nearly 8 percent in September, fuelled by the third round of quantitative easing by the US Federal Reserve, the promise of bond buying by the European Central Bank and stimulus measures in Japan and China. Meanwhile the German ZEW Economic Sentiment Index unexpectedly experienced a considerable drop in November, while there is still divergence between the IMF and EU on Greek aids. Moreover, Spain is still not seen to apply for assistance, putting pressures on the euro. In Chinese domestic markets, the State Council's approval of RMB 200 billion investment quota for the QFII (Qualified Foreign Institutional Investors) will lift Chinese A-shares. In yesterday's trading session zinc has touched the low of 103.6 after opening at 104.75, and finally settled at 104.05. For today's session market is looking to take support at 103.4, a break below could see a test of 102.8 and where as resistance is now likely to be seen at 104.9, a move above could see prices testing 105.8.

Trading Ideas:

Zinc trading range for the day is 102.75-105.75.

Zinc dropped coupled with market worries over the US fiscal cliff, most investors chose to cut previous long positions

German ZEW Economic Sentiment Index unexpectedly experienced a considerable drop in November

Market focus gradually turned to a series of US economic data on Wednesday, including retail sale data