Zinc yesterday traded with the positive node and settled 0.1% up at 103.45 but pressure will be seen as signals from top consumer China will step up efforts to stabilise its economy is expected to put a floor under prices. China's Premier Wen Jiabao on Sunday said efforts to stabilise the economy are working and the government will step up efforts in the second half of the year to increase policy effectiveness and foresight, raising hopes of more aggressive investment spending by Beijing.  LME zinc prices last Friday opened at $1,845/mt and once touched $1,860/mt in the afternoon. The growth of China’s GDP during 2Q slowed to 7.6%, and the lowest since early 2009, but in line with market expectations, triggering speculations that China’s central bank will release further easing policies. Besides, the euro surged. As a result, LME zinc prices surged and touched $1,889/mt, and finally closed at $1,873.5/mt that is up by +1.46%. In yesterday's trading session zinc has touched the low of 103.3 after opening at 103.3, and finally settled at 103.45. For today's session market is looking to take support at 103.3, a break below could see a test of 103.2 and where as resistance is now likely to be seen at 103.5, a move above could see prices testing 103.6.

Trading Ideas:

Zinc trading range for the day is 103.22-103.62.

Zinc pressure will be seen as signals from top consumer China will step up efforts to stabilise its economy

The growth of China’s GDP during 2Q slowed to 7.6%, in line with market expectations

Zinc weekly stocks at Shanghai exchange came down by 430 tonnes