Commodity Trading Tips for Zinc by KediaCommodity

ZincZinc yesterday traded with the positive node and settled 0.49% up at 102.55 tracking LME zinc prices overnight struggled at USD 2,000/mt mark. US GDP grew 3.0% in 4Q 2011, the largest increase last seen in 2Q 2008, but still lower than expected. As a result, LME zinc prices fluctuated and closed at USD 2,004/mt, down USD 38/mt. Economic data for March released from the euro zone on Thursday were relatively weak. In addition, the Kansas Fed Manufacturing Index for March also slipped. The downbeat economic data weighed on base metal prices to certain extent. However, boosted by rally of the Dow Jones Industrial Average Index and remark from Germany’s financial minister that the 17 bloc financial ministers will discuss the firewall on Friday and may expand scale of ESM (European Stability Mechanism) from EUR 500 billion to EUR 800 billion, confidence in base metal market was lighten to certain extent. In this context, LME base metal prices closed mixed overnight. In yesterday's trading session zinc has touched the low of 101.3 after opening at 102.25, and finally settled at 102.55. For today's session market is looking to take support at 101.6, a break below could see a test of 100.6 and where as resistance is now likely to be seen at 103.3, a move above could see prices testing 104.

Trading Ideas:

Zinc trading range for the day is 100.58-103.98.

Zinc yesterday traded with the positive node as US GDP grew 3.0% in 4Q 2011, but still lower than expected

Economic data for March released from the euro zone on Thursday were relatively weak

Zinc daily stocks at Shanghai exchange came down by 375 tonnes