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Thursday, March 23, 2023

MCX Zinc may trade between 188.7-201.3 levels

Technically MCX Zinc market is getting support at 192.9 and below same could see a test of 188.7 level, And resistance is now likely to be seen at 199.2, a move above could see prices testing 201.3.

Zinc on MCX settled up 1.65% at 196.90 gained on fresh buying as support seen after low LME zinc inventories and extended losses in the greenback buoyed the zinc. LME zinc inventories are near record lows.

This, together with supply issues overseas, lowered the possibility of a sharp decline in LME zinc, which is expected to stay at highs. As a strong LME zinc drove investors on MCX  to load up long positions, and remained within it recent trading range as seasonal supply pressure in China sustained.

Also the ILZSG released preliminary data for world zinc supply and demand during 2018. Initial data compiled by the ILZSG for the year 2018 show that the global market for refined zinc metal recorded a deficit of 384kt.

Inventories held in LME, Shanghai Futures Exchange and CSRB warehouses together with those reported by producers, consumers and merchants decreased by 143kt to total 880kt.

Yesterday the US dollar slid to a three-week low on Tuesday, as Federal Reserve Chairman Jerome Powell repeated in prepared testimony released in advance of a hearing before the US Senate Banking Committee that the US central bank would remain “patient” in deciding on further interest rate hikes.

The greenback also benefited from a jump in the US consumer confidence index for February. Now day ahead economic data slated for release today include the Eurozone’s economic climate index and consumer confidence index for February, the US’ wholesale inventories, factory orders and durable goods orders for December, pending home sales for January.

Trading Ideas:
–Zinc trading range for the day is 188.7-201.3.
–Zinc prices gained rebounding from the day’s low as support seen after LME Stock was down by -8925MT.
–U.S. President Trump confirmed he would delay a planned tariff increase on Chinese imports as talks were making “substantial progress”
–The global zinc market deficit narrowed to 61,800 tonnes last December from a revised deficit of 80,900 tonnes in November.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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