Tuesday, June 14, 2011

Zinc Updates

Zinc June contract offered at Rs 101.10 per kg, up Re 0.60 and traded between Rs 101.20- 100.30 per kg. Total volume recorded so far 8,622 lots. 
Yesterday zinc updates as traded with the positive node and settled 1.03% up at 101.55 as China’s Central Bank announced after the new CPI in the afternoon it will raise the deposit reserve ratio for financial institutions by 0.5%, which was under expectation. In this context, LME zinc prices edged up.
The US Commerce Department released that retail sales for May slid 0.2% from April, better than the forecast of a 0.4% decrease. The US dollar index moved around 74.2, pushing up LME zinc prices to close higher at USD 2,276/mt, up USD 38/mt.
Trading Ideas for zinc updates :
Zinc trading range is 99.8-102.5.
Zinc yesterday ended higher after China’s Central Bank raise the deposit reserve ratio by 0.5%
Zinc looks to take support at 100.70 and resistance at 102.
Zinc daily stocks at Shanghai exchange came down1180 by 476 tonnes.

SHFE 1108 zinc contract prices should fluctuate between RMB 17,300-17,600/mt today, with spot discounts expanding to negative RMB 200-250/mt. In yesterday's trading session zinc has touched the low of 100.3 after opening at 100.55, and finally settled at 101.55. For today's session market is looking to take support at 100.7, a break below could see a test of 99.8 and where as resistance is now likely to be seen at 102, a move above could see prices testing 102.5.


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