MCX Zinc under fresh selling; Support seen at 188.7
Commodity Online | July 22 2019
UPDATED 09:50:38 IST

MCX Mentha Oil likely to move in a range of 1279.4-1308.8

MCX Aluminium may trade between 131.4-134.4 levels

MCX Nickel likely to move in a range of 977-1014.2

MCX Zinc under short covering; Resistance seen at 184.3

MCX Copper under short covering; Resistance seen at 441.1

Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 1.39% to settled at 2841 while prices down 1.85 rupees.

Now MCX Zinc is getting support at 188.7 and below same could see a test of 186.8 level, and resistance is now likely to be seen at 193.4, a move above could see prices testing 196.2.

Zinc on MCX settled down 0.96% at 190.6 amid growing expectations of an inventory rebound in the near future. The global zinc market deficit narrowed to 27,200 tonnes in May from an upwardly revised deficit of 87,500 tonnes in April, data from the International Lead and Zinc Study Group (ILZSG) showed.

During the first five months of the year, the global deficit increased to 123,000 from 103,000 tonnes in the same period last year. Zinc inventories in LME-approved warehouses have risen around 60% since April when the stockpiles hit a record low, while stocks in warehouses tracked by ShFE have jumped 268% year-to-date.

The premium of cash over three-month zinc contracts on the LME eased to $4 a tonne, from $12 in the previous session, indicating more nearby supplies. The number of Americans filing for unemployment benefits increased moderately last week, reflecting strong labour market conditions despite signs of slowing economic activity.

Initial claims for state unemployment benefits rose 8,000 to a seasonally adjusted 216,000 for the week ended July 13, the Labor Department said on Thursday. The rise was in line with economists’ expectations. Data for the prior week was revised to show 1,000 fewer applications received than previously reported.

Trading Ideas:
--Zinc trading range for the day is 186.8-196.2.
--Zinc prices ended with losses amid growing expectations of an inventory rebound in the near future.
--The global zinc market deficit narrowed to 27,200 tonnes in May from an upwardly revised deficit of 87,500 tonnes in April.
--The premium of cash over three-month zinc contracts on the LME eased to $4 a tonne, from $12 in the previous session, indicating more nearby supplies.

Courtesy: Kedia Commodities

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