Zinc yesterday traded with the negative node and settled -0.72% down at 104.35 yesterday, the slow progress in Greek debt restructuring negotiations and Portugal borrowing costs surging to a record high caused investors to exit the market, and LME Zinc prices lost the 5-day moving average as a result, with prices finally closing at USD 2,111.3/mt, down USD 37/mt.
The market is most concerned about the Greek debt negotiations, and sources report that EU leaders will hold a special summit on the Greek debt problem in February.
This means that Greek debt problem will be dragged into February, which also erodes market patience to resolve European debt crisis. In addition, the drop in the Shanghai Composite Index yesterday and possible rebound in US dollar index will both constrain further rises in metal prices.
In yesterday's trading session zinc has touched the low of 102.8 after opening at 104.9, and finally settled at 104.35.
For today's session market is looking to take support at 103.1, a break below could see a test of 101.9 and where as resistance is now likely to be seen at 105.2, a move above could see prices testing 106.1.
Trading Ideas:
Zinc trading range is 101.9-106.1.
Zinc dropped as commodity markets still remained weak as the slow progress in Greek debt restructuring.
Greek debt problem will be dragged into February, which also erodes market patience to resolve European debt crisis.
Drop in the Shanghai yesterday and possible rebound in dollar index will both constrain further rises in metal prices.
Courtesy: Kedia Commodities
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