Zinc yesterday traded with the positive node and settled 0.34% up at 103.80 supported by hopes of more monetary stimulus from the US Fed after weak retail sales data added to evidence the world's largest economy was slowing. Investors are eyeing Fed Chairman's Congressional testimony for clues on whether the central bank will launch further easing measures to shore up the economy. The IMF cut its forecast for global economic growth and warned the outlook could dim further if policymakers in the euro zone do not act with enough force and speed to quell their region's debt crisis. Meanwhile US retail sales fell in June for the third straight month, the longest run of consecutive drops since 2008 when the country was mired in recession. And US government bond yields flirted with record lows, oil prices rallied and the dollar fell to a one-month low against the yen after weak US retail sales data fed bets a faltering economy would prompt more stimulus from the Fed. A slowdown in global growth and sluggish demand from top consumer China are set to dampen metal prices this year, with a sharp fall in the second quarter prompting a downward revision to forecasts for the year. For today's session market is looking to take support at 103.1, a break below could see a test of 102.4 and where as resistance is now likely to be seen at 104.2, a move above could see prices testing 104.6.

Trading Ideas:

Zinc trading range for the day is 102.43-104.63.

Zinc gained supported by hopes of more monetary stimulus from the US Fed after weak retail sales data added to evidence

A slowdown in global growth and sluggish demand from top consumer China are set to dampen metal prices this year

Zinc daily stocks at Shanghai exchange came down by 126 tonnes