MCX Zinc likely to move in a range of 183.7-191.7

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Technically Zinc market is under short covering as market has witnessed drop in open interest by 11.69% to settled at 2908 while prices up 0.45 rupees.

Now MCX Zinc is getting support at 185.7 and below same could see a of 183.7 levels, and resistance is now likely to be seen at 189.7, a move above could see prices testing 191.7.

Zinc on MCX settled up 0.24% at 187.75 as support seen after confirmation of talks between U.S. and China also aided sentiment.

Prices also rose as apparent progress in the political crises in Britain and Hong Kong gave investor confidence a shot in the arm, with easing fears of a hard Brexit lifting the battered pound. The safe-haven US dollar which jumped on investors’ optimism after British lawmakers took steps to block a no-deal Brexit.

Activity in China’s services sector expanded at the fastest pace in three months in August as new orders rose, prompting the biggest increase in hiring in over a year, a Caixin survey showed. The Caixin/Markit services purchasing managers’ index (PMI) picked up to 52.1 last month, the highest since May, compared with 51.6 in . The index has stayed above the 50 level that separates growth from contraction on a monthly basis since late 2005.

The US trade deficit narrowed less than expected in July as the US-China trade war drags on. The Bureau of Analysis (BEA) said the US international trade deficit came in at $54 billion for July. According to estimates from Eurostat, in July compared with June, the seasonally adjusted volume of retail trade decreased by 0.6% in the euro area (EA19) and by 0.5% in the EU28.

Trading Ideas:
–Zinc trading range for the day is 183.7-191.7.
–Zinc prices gained as support seen after confirmation of talks between U.S. and China also aided sentiment.
–Prices also rose as apparent progress in the political crises in Britain and Hong Kong gave investor confidence a shot in the arm, with easing fears of a hard Brexit.
–The US trade deficit narrowed less than expected in July as the US-China trade war drags on.

Courtesy: Kedia Commodities

Source: Commodityonline.com