Zinc yesterday traded with the positive node and settled 0.29% up at 103.55 as market concerns improved last Friday as finance ministers of the Euro zone did not approve the second bailout plan for Greece, while Standard & Poor's announced it would cut ratings of 34 financial institutions of which headquarters are located in Italy.
As a result, investors left the market with profit-taking, pushing down LME Zinc prices overnight below USD 2,100/mt, with prices finally closing at USD 2,090/mt, down USD 63/mt.
Eurozone finance ministers passed the vote to the bailout plan for Greece on the morning of Monday, Zinc stockpiles climbed 1,463 tons to a three-month high of 374,587 tons, based on a survey of 15 warehouses in Shanghai, Guangdong and Zhejiang, while those of Lead rose 6,392 tons to 36,354 tons.
In yesterday's trading session Zinc has touched the low of 103.25 after opening at 103.3, and finally settled at 103.55.
For today's session market is looking to take support at 103.3, a break below could see a test of 103.1 and where as resistance is now likely to be seen at 103.7, a move above could see prices testing 103.9.
Trading Ideas:
Zinc trading range for the day is 103.08-103.88.
Zinc settled up as market concerns improved as finance ministers of Euro zone did not approve second bailout plan for Greece
Weaker China imports in January, Greece worry pressure base metals prices
Zinc weekly stocks at Shanghai exchange came up by 1463 tonnes
Courtesy: Kedia Commodities
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