Zinc yesterday traded with the negative node and settled -3.98% down at 95.55 in response to losses in U.S. equity markets as investors fled riskier assets amid increasing concerns over the strength of global economy. Supply-demand fundamentals have taken a back seat for now, with investors focusing on macroeconomic issues such as the health of U.S. economy and debt contagion in the euro zone. Minmetals Resources Ltd. a unit of China’s largest metals trader, said zinc production fell 13 percent in the second quarter because of lower grades at the Golden Grove mine in Western Australia. Zinc stockpiles declined for a fourth week to 400,336 tons, down 235 tons, based on a survey of 15 warehouses in Shanghai, Guangdong and Zhejiang, while lead stored in the warehouses gained 2,207 tons to 61,031 tons, the data showed. In yesterday's trading session zinc has touched the low of 94.25 after opening at 99.25, and finally settled at 95.55. For today's session market is looking to take support at 93.5, a break below could see a test of 91.4 and where as resistance is now likely to be seen at 98.5, a move above could see prices testing 101.4.

Trading Ideas:

Zinc trading range is 91.4-101.4.

Zinc fell sharply in response to losses in U.S. equity markets as investors fled riskier assets

Supply-demand fundamentals have taken a back seat for now, with investors focusing on macroeconomic issues

Zinc weekly stocks at Shanghai exchange came down by 235 tonnes