Zinc yesterday traded with the positive node and settled 0.15% up at 101.2 recovered from the last days fell after manufacturing data from China showing a lacklustre start to the year reduced expectations of demand from the world's top consumer of the metal, with a weak euro putting further pressure on prices.
China's manufacturers started 2012 in a sluggish mode, suggesting Beijing will keep pulling pro-growth policy levers, despite some early signs that a downward drift in factory activity is slowing, a survey of purchasing managers showed on Friday.
Looking ahead into next week, market expect trading activity to be subdued due to the week-long Lunar New Year holiday in China.
Zinc stockpiles added 2,291 tons to 369,698 tons, based on a survey of 15 warehouses in Shanghai, Guangdong and Zhejiang, while those of Lead climbed for the first time in five weeks, rising 291 tons to 29,434 tons.
In yesterday's trading session Zinc has touched the low of 101 after opening at 101, and finally settled at 101.2.
For today's session market is looking to take support at 101, a break below could see a test of 100.9 and where as resistance is now likely to be seen at 101.3, a move above could see prices testing 101.5.
Trading Ideas:
Zinc trading range is 100.9-101.5.
Zinc ended with the positive node recovered from the last days fell after manufacturing data from China
China's manufacturers started 2012 in a sluggish mode, suggesting Beijing will keep pulling pro-growth policy levers
Zinc weekly stocks at Shanghai exchange came up by 2291 tonnes
Courtesy: Kedia Commodities
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