Zinc yesterday traded with the negative node and settled -0.39% down at 103.8 tracking LME zinc prices overnight continued to fluctuate.
As concerns over European debt crisis still dominate the market, and due to concerns that Greece will default on its debt, LME zinc prices overnight finally closed at USD 2,200/mt, down USD 13/mt.
The European debt crisis is still market focus. Positive statement from the European Central Bank and Germany officials eased market concern to certain extent.
In addition, China also reiterated its stance to continue supporting EU countries to cope with European debt crisis, and will continue to invest Europe. In response, the US equity markets closed with gains across the board, and the US index ended with slight losses.
NYMEX crude oil for delivery in October was boosted to close above USD 90/barrel, owing to decline in EIA crude oil inventory, while London spot gold closed with moderate gains. In yesterday's trading session zinc has touched the low of 103.15 after opening at 104.1, and finally settled at 103.8.
For today's session market is looking to take support at 102.9, a break below could see a test of 102 and where as resistance is now likely to be seen at 104.9, a move above could see prices testing 106.
Trading Ideas:
Zinc trading range is 102-106.
Zinc prices overnight continued to fluctuate as concerns over European debt crisis still dominate the market
Downstream buyers will build stocks as the National Day holiday nears.
Investor worries caused by debt crisis in Greece and Italy overnight with the euro rebounding to help stock prices.
Courtesy: Kedia Commodities
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