Zinc yesterday traded with the negative node and settled -2.81% down at 108.55 as crude oil prices hit a two-year high on Monday due to the exacerbating chaos in Lybia, triggering fears in major economies that if they can get rid of inflations without using tightening monetary policies. Meanwhile, the Moody's has downgraded Greece rating, with declaring its financial rectification will be potentially at risk and there may be a possibility of a debt restructuring in Greece. In this context, inventors all sold base metals for risk aversion, pushing down LME zinc prices to fall by 3.7%, and with prices falling from USD 2,520/mt to close at USD 2,370, down USD 91/mt. In yesterday's trading session zinc has touched the low of 107.35 after opening at 111.05, and finally settled at 108.55. For today's session market is looking to take support at 106.8, a break below could see a test of 105.1 and where as resistance is now likely to be seen at 110.8, a move above could see prices testing 113.1.

Trading Ideas:

Zinc trading range is 105.1-113.1.

Zinc endedlower as crude oil prices hit a two-year high on Monday due to the exacerbating chaos in Lybia

Zinc looks to take resistance at 109.80 and support is at 107.40 level.

Zinc daily stocks at Shanghai exchange came down by 52 tonnes