MCX Zinc under fresh buying; Support seen at 172.4
Commodity Online | July 16 2020
UPDATED 10:20:04 IST

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MCX Aluminium may trade between 138.9-147.9 levels

MCX Nickel likely to move in a range of 1023.1-1083.9

MCX Zinc under short covering; Resistance seen at 186.1

MCX Copper under fresh buying; Resistance seen at 515

Technically Zinc market is under fresh buying as market has witnessed gain in open interest by 1.71% to settled at 1849 while prices up 1.25 rupees.

Now MCX Zinc is getting support at 172.4 and below same could see a test of 170.7 levels, and resistance is now likely to be seen at 175.4, a move above could see prices testing 176.7.

Zinc yesterday settled up by 0.72% at 173.95 as investors digested rising tensions between the US and China and hopes for a coronavirus vaccine.

The European Union will agree on a rescue financing package that will limit the economic damage to the bloc from the coronavirus pandemic.

China’s refined zinc output fell for a second straight month in June, as smelters in Shaanxi, Hunan and Anhui conducted maintenance as planned and as Xiangyun Feilong in Yunnan scaled back output due to equipment failure.

The decline was limited by the recovery from maintenance at some smelters in Yunnan and Inner Mongolia and as Shaanxi Hanzhong smelter ramped up production.

Zinc inventories in China rose over the weekend, due to concentrated arrivals at some regions and as a spike in prices sidelined buyers.

Data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei increased 1,800 mt from last Friday July 10 to 214,200 mt.

The United States rejected China’s disputed claims to offshore resources in most of the South China Sea - a shift in tone which prompted a rebuke from Beijing.

The Trump Administration also plans on scrapping a 2013 auditing agreement that could foreshadow a broader crackdown on U.S.-listed Chinese firms, as friction between the world’s two largest economies generates heat on a broad front.

Trading Ideas:
--Zinc trading range for the day is 170.7-176.7.
--Zinc prices gains as investors digested rising tensions between the US and China and hopes for a coronavirus vaccine.
--China’s refined zinc output fell for a second straight month in June, as smelters in Shaanxi, Hunan and Anhui conducted maintenance as planned.
--The United States rejected China’s disputed claims to offshore resources in most of the South China Sea.

Courtesy: Kedia Commodities