19.4 C
New York
Saturday, October 16, 2021

MCX Zinc under long liquidation; Support seen at 190.5

Technically Zinc market is under long liquidation as market has witnessed drop in open interest by 1.5% to settled at 3210 while prices down 1.85 rupees.

Now MCX Zinc is getting support at 190.5 and below same could see a test of 189.1 level, And resistance is now likely to be seen at 193.5, a move above could see prices testing 195.1.

Zinc on MCX settled down 0.95% at 191.95 tracking weakness from LME Zinc prices which fell 0.6 percent to $2,683 as the dollar firmed and investors cashed in gains from a rally in the previous session.

The dollar found strength in minutes from a U.S Federal Reserve meeting that raised expectations of a possible U.S. interest rate increase this year. Meanwhile the United States and China have started to outline commitments in principle on the stickiest issues in their trade dispute, the most significant progress yet toward ending a seven-month trade war, sources said.

Signs of progress in trade talks usually boost metals and equities, but markets had been “brewing on that theme for too long and most of the positive news has been priced in already.

Meanwhile the global zinc market deficit narrowed to 61,800 tonnes last December from a revised deficit of 80,900 tonnes in November, data from the International Lead and Zinc Study Group (ILZSG) showed.

In the full year 2018 the zinc market had a 384,000 tonne deficit, compared with a deficit of 442,000 tonnes in 2017.Now a day ahead economic data slated for release today include Germany’s fourth-quarter GDP growth and February Ifo business climate index, the eurozone’s January CPI and US weekly oil rig count report from Baker Hughes. Officials from China and the US will continue their trade negotiations in Washington today.

Trading Ideas:
–Zinc trading range for the day is 189.1-195.1.
–Zinc prices slipped as the dollar firmed and investors cashed in gains from a rally in the previous session fuelled by falling inventories.
–U.S. President Donald Trump said talks with China in Washington were going well and suggested he was open to extending the deadline to complete negotiations.
–The premium for cash zinc over the three-month LME contract rose to $26.50 as stocks in LME warehouses fell to their lowest since 2017 at 83,250 tonnes.

Courtesy: Kedia Commodities

Source: Commodityonline.com

Related Articles

Stay Connected

10,814FansLike
12,893FollowersFollow
756FollowersFollow
- Advertisement -

Latest Articles

Popular Articles