Commodity Trading Tips for Zinc by KediaCommodity

Ajay Kumar Kedia 12 May 2014

Zinc Zinc settled down -0.20% at 122 after China’s April CPI growth on a YoY basis was reported at an 18-month low of 1.8%, and PPI fell for a 26th straight month by 2%, worse than the 1.9% decline expected. The data triggered anticipation for easy monetary policy, but the PBOC remained cautious. The State Council issued opinions on further development of capital market, setting out goals for further reforms, which boosted market confidence. Elsewhere in the US, March’s retail sales registered a 1.4% MoM rise, exceeding the 0.7% in February, while wholesale stocks also increased 1.1% in March, higher than February’s 0.5%. In the euro zone, Italy’s industrial output dropped unexpectedly by 0.5% in March, well below the 0.3% growth economists had expected. On the week, prices dropped amid easing concerns over a slowdown in demand from top consumer China. Data released Friday showed that CPI in China rose 1.8% in April from a year earlier, less than market expectations for a 2.0% gain, while producer price inflation declined 2%, more than market calls for a 1.9% contraction. On Thursday, official trade data showed that China’s surplus widened to $18.45 billion in April from a surplus of $7.7 billion in March, compared to estimates for a surplus of $13.9 billion. Exports climbed 0.9% from a year earlier, beating expectations for a 1.7% decline and following a 6.6% drop in March. Imports rose 0.8%, compared to forecasts for a 2.3% decline and after plunging 11.3% in the previous month. Technically market is under long liquidation and getting support at 121.6 and below same could see a test of 121.1 level, And resistance is now likely to be seen at 122.7, a move above could see prices testing 123.3.