MCX Zinc market under long liquidation
Commodity Online | September 16 2016
UPDATED 12:25:11 IST

MCX Natural Gas under long liquidation; Resistance seen at 191.1

MCX Crude Oil under short covering; Support seen at 2876

MCX Silver under long liquidation; Resistance seen at 61260

MCX Gold under fresh selling; Support seen at 50092

NCDEX Jeera under fresh selling; Resistance seen at 14140

Zinc on MCX settled down -1.98% at 148.80 as trader book profit in there long position after the update that the global zinc market deficit narrowed to 5,000 tonnes in July from an upwardly revised deficit of 53,000 tonnes in June, data from the International Lead and Zinc Study Group (ILZSG) showed on Thursday. Zinc has been the second-best LME performer since June 1 and the best performer since the start of the year, jumping 40 percent on concern that the closure of major mines and cutbacks at others would lead to a scramble for supplies.

Today prices can trade in positive zone as China's economy shows signs of finding its feet. Encouraging signals out of China's housing market and indications of a revival in its factory sector over the summer have stoked views that demand is quietly cranking up for the third quarter. While volumes can be thin as China's financial markets are closed for its mid-Autumn holiday. They will reopen on Monday. From data side U.S. retail sales fell more than expected in August amid weak purchases of automobiles and a range of other goods, pointing to cooling domestic demand that further diminishes expectations of a Federal Reserve interest rate increase next week.

Technically market is under long liquidation as market has witnessed drop in open interest by -11.61% to settled at 7342 while prices down -3 rupee, now Zinc is getting support at 147.6 and below same could see a test of 146.3 level, And resistance is now likely to be seen at 151.3, a move above could see prices testing 153.7.

Trading Ideas:

--Zinc trading range for the day is 146.3-153.7.

--Zinc prices ended with losses tracking weakness in LME prices due to profit booking

--U.S. retail sales fell more than expected in August amid weak purchases of automobiles and a range of other goods.

--A report showed that wholesale prices were flat in August, mostly because of sharp declines in the cost of food and gasoline.

Courtesy: Kedia Commodities

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