Technically Zinc market is under long liquidation as market has witnessed drop in open interest by 15.77% to settled at 689 while prices down 16.4 rupees.
Now MCX Zinc is getting support at 277.5 and below same could see a test of 269.3 levels, and resistance is now likely to be seen at 298.8, a move above could see prices testing 311.9.
Zinc yesterday settled down by 5.43% at 285.65 rattled by concerns over tightening regulations on the commodities market in China.
U.S. home sales surged to an eight-month high September, but higher prices as supply remains tight are squeezing out first-time buyers from the housing market.
Existing home sales increased by 7.0% the largest increase in a year – to a seasonally adjusted annual rate of 6.29 million units last month, the highest level since January, the National Association of Realtors said.On the macro front, the Federal Reserves issued the so-called Beige Book, which covers the “anecdotal information on current economic conditions”.
According to the Book, the US economic activities have been described as “modest to moderate”, and the economic prospect has been cautiously optimistic amid supply chain disruptions and labour shortage caused by the COVID-19 pandemic.
The demand was resilient as a whole. On the fundamentals, South Korea’s Young Poong (YP) smelter will be closed from Nov. 8 – 17 as it violates the water environmental protection regulation.
The People’s Bank of China (PBOC) injected a total CNY 100 billion of seven-day reverse repos into the banking system for the second straight day at an interest rate of 2.2 percent on October 21th.
Trading Ideas:
–Zinc trading range for the day is 269.3-311.9.
–Zinc prices dropped rattled by concerns over tightening regulations on the commodities market in China.
–South Korea’s Young Poong (YP) smelter will be closed from Nov. 8 – 17 as it violates the water environmental protection regulation.
–U.S. existing home sales surge to 8-month high in September.
Courtesy: Kedia Commodities
Source: Comodity Online
