MCX Zinc under short covering; Resistance seen at 184
Commodity Online | January 17 2020
UPDATED 09:50:14 IST

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Technically Zinc market is under short covering as market has witnessed drop in open interest by 8.37% to settled at 14740 while prices up 1.1 rupees.

Now MCX Zinc is getting support at 181.6 and below same could see a test of 180.3 levels, and resistance is now likely to be seen at 184, a move above could see prices testing 185.1.

Zinc on MCX settled up 0.61% at 182.85 as dollar dropped as the US and China signed a deal that will roll back some tariffs and boost Chinese purchases of US goods and services, defusing an 18-month conflict between the world’s two largest economies.

But the deal will leave in place 25% tariffs on a vast, $250 billion array of Chinese industrial goods and components used by US manufacturers, which is also seen as “fragile”.

China’s new home prices rose 0.3% in December month-on-month, unchanged from the pace in November, calculated from official National Bureau of Statistics (NBS) data.On an annual basis, average new home prices in China’s 70 major cities rose 6.6% in December, down from 7.1% in November, and the slowest year-on-year pace since July 2018.

China has clamped down on property speculation since 2016 to stop home prices from overheating.But with the pace of economic growth slowing, policymakers are careful not to overly stifle the property market - a pillar of the broader economy. In Europe, the UK, France and Germany have all formally accused Iran of violating its 2015 nuclear deal, a move which could pave the way for a re-imposition of UN sanctions lifted as part of the agreement.

Trading Ideas:
--Zinc trading range for the day is 180.3-185.1.
--Zinc prices gains as dollar dropped as the US and China signed a deal that will roll back some tariffs and boost Chinese purchases of US goods and services.
--Fed's Beige Book: US economy continued to expand modestly through December.
--China’s new home prices rose 0.3% in December month-on-month, unchanged from the pace in November, Reuters calculated from official National Bureau of Statistics (NBS) data.

Courtesy: Kedia Commodities

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