Zinc yesterday traded with the positive node and settled 0.77% up at 110.95 as China's December trade value grew noticeably, showing China's economy is improving. As a result, LME zinc prices entered upward track after dipping to USD 2,018.3/mt, breaking through the 5-day moving average. Both Eurozone and Bank of England maintained interest rates unchanged, but Spain's government bond auction was upbeat, reflecting investors optimism towards Eurozone. In this context, the US dollar index were pulled down below 80, and LME zinc prices soared to USD 2,053.8/mt, and finally closed at USD 2,052/mt, up USD 33.3/mt. Most market participants were expecting the ECB to leave rates unchanged, though some had not ruled out a rate cut due to soft economic indicators repeatedly hitting the wire across the currency zone. Focus was expected to remain on the US economy, as investors remained jittery over the longer term fiscal outlook, with negotiations on raising the US debt ceiling still to come in February. In yesterday's trading session zinc has touched the low of 109.85 after opening at 109.95, and finally settled at 110.95. For today's session market is looking to take support at 110.1, a break below could see a test of 109.3 and whereas resistance is now likely to be seen at 111.5, a move above could see prices testing 112.

ZINC

Zinc trading range for the day is 109.32-112.02.

Zinc gained as China's December trade value grew noticeably, showing China's economy is improving

Both Eurozone and BoE maintained interest rates unchanged, but Spain's government bond auction was upbeat.

Zinc weekly stocks at Shanghai exchange came down by 25 tonnes

Warehouse stock for Zinc at LME was at 1215275mt that is down by -2525mt.

SELL ZINC JAN BELOW 110.80 SL 111.50 TGT 110.00-109.20. MCX