Zinc yesterday traded with the negative node and settled -0.96% down at 104.5 but recovery can be seen as appetite for riskier assets was boosted amid indications of progress in talks between Greece and its bondholders, while supply disruption concerns added further support.
Speaking at a European Union summit in Brussels, Greek Prime Minister Lucas Papademos said "significant progress” was made in talks aimed at restructuring the country’s debt, boosting hopes that a deal can be finalized before the end of the week.
An agreement is necessary for Greece to secure the next tranche of bailout funds in order to prevent a sovereign debt default.
Meanwhile, EU leaders agreed on its fiscal union pact and signed off on the details of a EUR500 billion permanent bailout fund for the euro zone.
Europe as a region is second after China in global demand for the industrial metal. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months.
For today's session market is looking to take support at 103.6, a break below could see a test of 102.7 and where as resistance is now likely to be seen at 106.1, a move above could see prices testing 107.7.
Trading Ideas:
Zinc trading range is 102.7-107.7.
Zinc settled down but recovery can be seen as appetite for riskier assets was boosted amid indications of progress.
Japan's exports of Zinc surged 44% to 12,273tns in Dec as exports to China more than doubled.
Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months.
Courtesy: Kedia Commodities
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