LME zinc inventories will likely continue to climb, as inventory financing deals are expiring and unofficial inventories will be shifted into LME warehouses. LME zinc inventories rose 30,675 tons Tuesday to 617,325 tons. Zinc yesterday we have seen that market has moved -1.37%. Market has opened at 89.4 & made a low of 86.95 versus the day high of 89.6. The total volume for the day was at 28395 lots and the open interest was at 4729.Now support for the zinc is seen at 86.7 and below could see a test of 85.5. Resistance is now likely to be seen at 89.4, a move above could see prices testing 90.8.

Trading Ideas:

Zinc trading range is 85.5-90.8.

LME zinc inventories will likely continue to climb

Resistance for zinc is seen at 89.40 and support is at 86.70.

Zinc daily stock at Shanghai exchange came up by 3885 tonnes.

SELL ZINC MAY @ 90 SL 91.10 TGT 89.30-88.50-87.80.MCX