MCX Zinc likely to move in a range of 181.6-188.6

Technically MCX Zinc market is getting support at 182.9 and below same could see a test of 181.6 level, And resistance is now likely to be seen at 186.4, a move above could see prices testing 188.6.

Zinc on MCX settled down 0.7% at 184.05 dropped on fresh selling tracking weakness from LME zinc which extended its losses to end at $2,590/mt on Thursday, posting a five-day losing streak.

Despite LME zinc inventories fell below 100,000 mt, which might offer some support to LME zinc, which is expected to stem declines with most transactions occurring at $2,580-2,630/mt. Base metals, except for lead, traded lower on Thursday.

Nickel tumbled 1.56%, aluminium and zinc dropped 0.61 & 0.70% and copper in range 0.07%. The US dollar index fell on Thursday, weighed by a string of disappointing US data, with retail sales recording their biggest drop in nine years in December and weekly jobless claims registering an increase.

Also China on Thursday reported exports and imports data for January that beat expectations. Dollar-denominated exports for the month rose 9.1% from a year ago, according to Chinese customs data.

China’s exports in January were expected to have contracted 3.3% from a year earlier, compared with the previous month’s 4.4% decline. January dollar-denominated imports, meanwhile, fell 1.5% on the year, which was far better than expectations of a 10.2% decline from a year earlier. Imports in December fell 7.6% from a year ago.

China’s overall trade surplus was $39.16 billion in January and exceeded the expected $34.3 billion. Now a day ahead Economic data slated for release today include China’s consumer and producer prices for January, the eurozone’s trade balance for December, the US’ import prices, industrial output for January, the University of Michigan consumer confidence index for February and weekly oil rig count from Baker Hughes.

Trading Ideas:
–Zinc trading range for the day is 181.6-188.6.
–Zinc dropped on profit booking after prices gained after better-than-expected trade data from top copper consumer China.
–U.S. Treasury Secretary Steven Mnuchin said he was looking forward to trade talks with China.
–Floods in Australia’s Queensland state are set to disrupt the rail delivery of zinc exports to the northern port of Townsville.

Courtesy: Kedia Commodities