Zinc yesterday traded with the positive node and settled 0.14% up at 104.15 tracking LME Zinc prices overnight surged to touch an intraday high USD 2,150/mt.
It is still obscure if Greek government can gain political support, while the government failed to reach any agreement with private creditors, causing market optimism to fade.
In this context, LME zinc prices rolled back previous gains and finally closed at USD 2,120/mt, down USD 1/mt. China's major economic data is going to be released today.
As no solid news came from Greek leaders meeting on Wednesday. Coupled with possible delay of Greek government bond swap plan since the European Central Bank did not make final decision whether or not participate for Greek debt restructure, LME base metal prices were weighed, with most closing with losses.
It is expected that market focus will shift to January CPI and PPI to be released soon from China, and it is widely expected that CPI may stay around 4%.
In yesterday's trading session Zinc has touched the low of 103.7 after opening at 104.2,and finally settled at 104.15.
For today's session market is looking to take support at 103.4, a break below could see a test of 102.7 and where as resistance is now likely to be seen at 105.2, a move above could see prices testing 106.2.
Trading Ideas:
Zinc trading range for the day is 102.68-106.18.
Zinc closed in positive zone as boosted by optimism and LME prices extended upward momentum
Focus will turn to Chinese data for January, traders believe it will be less than December
Zinc daily stocks at Shanghai exchange came up by 1601 tonnes
Courtesy: Kedia Commodities
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