Zinc yesterday traded with the negative node and settled -1.75% down at 108.75 on mixed to weak US housing data. US housing starts for December were down 4.3% to an annual rate of 529,000, lower than the forecast of 550,000. But permits for new construction leaped 6.1% to an annual rate of 635,000, higher than the forecast of 555,000. In this context, LME zinc prices overnight opened at USD 2,442/mt, and then fell below USD 2,400/mt, with prices finally closing at USD 2,395/mt. In yesterday's trading session zinc has touched the low of 108.05 after opening at 110.95, and finally settled at 108.75. For today's session market is looking to take support at 107.4, a break below could see a test of 106 and where as resistance is now likely to be seen at 110.8, a move above could see prices testing 112.8.

Trading Ideas:

Zinc trading range is 106-112.8.

Zinc yesterday traded with the negative node on mixed to weak US housing data. US

Zinc looks to take resistance at 110.80 and support is at 107.40 level.

Zinc daily stocks at Shanghai exchange came up by 501 tonnes