Zinc yesterday traded with the negative node and settled -0.39% down at 103.50 despite of China's central bank suddenly decided to lower interest rates, and European central bank lowered interest rates by 25 basis points to a record low 0.75%, and overnight deposit interest rates to zero so as to boost eurozone economy. As a result, LME zinc prices touched $1,907/mt. US employment data in the private sector was better than expected, with speculations that the likelihood of US Federal Reserve pushing quantitative easing decreases, pushing up the US dollar index to 82.95. Zinc on LME is at $1,904 per tonne was marginally lower, down $2 on the previous day’s close. Cancelled warrants leapt a net 50,900 tonnes to 209,175 tonnes. Several recent sizeable jumps in cancelled warrants have been attributed to finance deals in the current warehouse wars. There was also a 1,450-tonne drawdown in total stocks to 991,600 tonnes. Prices are up 2.8% so far this year, zinc was badly hit during the second quarter when prices dropped 6.2% amid mounting risks to the eurozone unity and global economic growth. In yesterday's trading session zinc has touched the low of 103.3 after opening at 103.7, and finally settled at 103.5. For today's session market is looking to take support at 102.9, a break below could see a test of 102.3 and where as resistance is now likely to be seen at 104.5, a move above could see prices testing 105.6.

Trading Ideas:

Zinc trading range for the day is 102.27-105.57.

Zinc yesterday traded with the negative node despite of China's central bank suddenly decided to lower interest rates

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