Commodity Trading Tips for Zinc by KediaCommodity

Ajay Kumar Kedia 23 May 2013

Zinc Zinc yesterday traded with the positive node and settled 2.03% up at 103.25 with strong market expectations that Bernanke will support easing policies. Bernanke’s statement explicitly supported the Fed to pursue easing policies, boosting market confidence. Retail sales in the UK surprised markets with a 1.3% drop in April, the biggest decline since April 2012. As widely expected, Bank of England (BOE) Governor Mervyn King called again for an extra 25 billion pounds of asset purchases. His appeal was echoed by Paul Fisher and David Miles. According to the minutes of the interest rate meeting by the Bank of Japan (BOJ), the BOJ will continue to expand monetary base by JPY 6-7 trillion each year and keep interest rate unchanged at 0-0.1%. Meanwhile, the BOJ revised the country’s current economic situation as “on the rise, a fifth straight month of hike in economic situation assessment. This sent Nikkei soaring 1.6% to a 5-1/2-year high. The People's Bank of China (PBOC) has cut intervention in exchange rate market, which is conducive to ease pressure from increased money supply.Bernanke’s speech last night came under the spotlight. Bernanke explicitly expressed support for QE3 in his testimony, boosting market sentiment and helping US stocks hit a new record high. The minutes of the May policy meeting indicate that a majority of Fed officials are in favor of using future economic data as the basis for deciding whether to slash accommodative monetary policy or not. In response, US shares pulled back from high levels and ended in negative territory. In yesterday's trading session zinc has touched the low of 101.35 after opening at 101.35, and finally settled at 103.25. For today's session market is looking to take support at 101.9, a break below could see a test of 100.6 and where as resistance is now likely to be seen at 104, a move above could see prices testing 104.7.