Zinc yesterday traded with the negative node and settled -0.19% down at 104.2 overall market was steady as LME market was be closed for Queen's Diamond Jubilee holiday, and so SHFE zinc market will track movements in domestic stocks markets. Zinc erased the early losses as the dollar turned lower against its major counterparts, but ongoing concerns over weakening global growth prospects were likely to continue to weigh. Prices got support as the dollar index gave up early gains and entered negative territory, as concerns over the situation in the euro zone eased slightly and amid growing hopes for policy action from global central banks. The euro found support after Portugal’s FM Vitor Gaspar announced that the country's EUR78 billion bailout program was on track. Gaspar also said Lisbon is planning a EUR6.65 billion liquidity injection to shore up the country’s fragile banking system. Meanwhile, official data showed that producer price inflation in the euro zone was flat in April, which could give the ECB leeway to cut rates ahead of its policy meeting this week. Market sentiment found further support amid speculation over coordinated liquidity-boosting measures by world central banks. Market are closely watching several monetary policy meetings due this week, including the ECB and BoE, for clues on their responses to weakening global growth. For today's session market is looking to take support at 103.2, a break below could see a test of 102.2 and where as resistance is now likely to be seen at 104.9, a move above could see prices testing
105.7.

Trading Ideas:

Zinc trading range for the day is 102.17-105.67.

Zinc dropped as overall market was steady as LME market was closed and SHFE market will track domestic stocks markets.

Zinc erased early losses as the dollar turned lower, but ongoing concerns over weakening global growth continued to weigh.

Euro found support after Portugal’s FM Vitor Gaspar announced that country's EUR78 billion bailout program was on track