Zinc yesterday traded with the positive node and settled 1.75% up at 102.95 tracking LME zinc prices which overnight edged up to USD 2,200/mt during Asian trading hours due to the weakened US dollar index.
Rumors that US President Obama plans to invest USD 300 billion to create jobs boosted investors’ risk appetite, and US stocks closed with gains, with the Down Jones Industrial Average up 275.56, or up 2.47%. In this context, LME zinc prices rose further to close at USD 2,241/mt, up USD 41/mt. Obama's jobs plan stimulated US equity markets to close more than 2% higher on Wednesday.
Meanwhile, Germany's constitutional court has supported the country's participation in the euro-zone bailouts, lifting the euro and pressuring the US dollar to close significantly down.
In this context, market confidence improved slightly, which helped LME basemetal prices move continuously upside. In yesterday's trading session zinc has touched the low of 100.95 after opening at 101.35, and finally settled at 102.95.
For today's session market is looking to take support at 101.6, a break below could see a test of 100.2 and where as resistance is now likely to be seen at 103.8, a move above could see prices testing 104.6.
Trading Ideas:
Zinc trading range is 100.2-104.6.
Zinc gained tracking LME zinc prices due to the weakened US dollar index
Germany's constitutional court has supported the country's participation in the euro-zone bailouts
Zinc daily stocks at Shanghai exchange came up by 44 tonnes
Courtesy: Kedia Commodities.
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