MCX Zinc market under long liquidation: Support seen at 148.2
Commodity Online | October 14 2016
UPDATED 11:42:04 IST

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Zinc on MCX settled down -0.7% at 149.85 as pressure seen on the prospect of improving supply.  Three-month zinc fell to its lowest in almost four weeks at $2,210 a tonne, before closing down 1.1 percent at $2,241. Peru's Antamina mine said it planned to double zinc production next year and Nyrstar's lead smelter in South Australia restarted after a blackout this week. First-time claims for U.S. unemployment benefits held at their lowest levels in over four decades in the week ended October 8th, the Labor Department revealed in a report.

The Labor Department said initial jobless claims came in at 246,000, unchanged from the previous week's revised level. With the downward revision to the figure for the previous week, jobless claims held at their lowest levels since November of 1973. China's exports dropped 10 percent from a year earlier in September, far worse than expected, while imports unexpectedly shrank after picking up in August, suggesting signs of steadying in the world's No.2 economy may be short-lived. Import prices in the U.S. saw a modest uptick in the month of September, according to a report released by the Labor Department. The report said import prices inched up by 0.1 percent in September after falling by 0.2 percent in August. The uptick in prices matched economist estimates.

The modest increase in import prices reflected a jump in prices for fuel imports, which surged up by 1.1 percent in September after tumbling by 2.4 percent in August. Technically market is under long liquidation as market has witnessed drop in open interest by -7.44% to settled at 6992, now Zinc is getting support at 148.2 and below same could see a test of 146.4 level, and resistance is now likely to be seen at 151.2, a move above could see prices testing 152.4.

Trading Ideas:
--Zinc trading range for the day is 146.4-152.4.
--Zinc prices dropped as pressure seen on the prospect of improving supply
--U.S. data showed the number of Americans filing for unemployment benefits held at a 43-year low last week.
--Zinc daily stocks at Shanghai exchange came down by 1440 tonnes.

Courtesy: Kedia Commodities