Zinc yesterday traded with the positive node and settled 2.46% up at 109.6 as the market was expecting that Euro-zone leaders will reach an agreement on the bailout funds support to Greece at the emergency meeting this Thursday.  The US housing starts was up 14.6% in June, the largest increases since January, and better than forecasts also supported the prices. The global refined zinc market was in surplus by 214,000 metric tons in the first five months of the year, the International Lead and Zinc Study Group. Zinc stockpiles fell 3,400 tons to 883,900 tons on declines in Malaysia. Canceled warrants declined 2,250 tons to 72,925 tons while rising for a third day in New Orleans, advancing 1,100 tons to 48,900 tons. In yesterday's trading session zinc has touched the low of 107.2 after opening at 107.2, and finally settled at 109.6. For today's session market is looking to take support at 107.9, a break below could see a test of 106.3 and where as resistance is now likely to be seen at 110.5, a move above could see prices testing 111.5.

Trading Ideas:

Zinc trading range is 106.3-111.5.

Zinc gained as market was expecting that Eurozone leaders will reach an agreement on the bailout

Global zinc market in 214,000-ton surplus January-May

Zinc looks to take support at 107.90 and resistance at 110.50.