Technically Zinc market is under long liquidation as market has witnessed drop in open interest by 3.71% to settled at 1478 while prices down 0.25 rupees.
Now MCX Zinc is getting support at 258.3 and below same could see a test of 256.7 levels, and resistance is now likely to be seen at 261.5, a move above could see prices testing 263.1.
Zinc yesterday settled down by 0.1% at 259.8 as the global zinc market deficit narrowed to 6,600 tonnes in July from a revised deficit of 40,000 tonnes in June, data from the International Lead and Zinc Study Group (ILZSG) showed.
Previously, the ILZSG had reported a deficit of 20,200 tonnes in June. During the first seven months of 2021, the ILZSG data showed a surplus of 11,000 tonnes, down from a surplus of 420,000 tonnes in the same period of 2020. Around 13.5 million tonnes of zinc are produced and consumed each year.
On the macro front, the energy crisis in Eurozone intensified, which is likely to extend to countries all over the world but with varying degrees. On the fundamentals, the fourth batch of national reserves to be released has been determined.
However, it will be more difficult to estimate the influences on social inventory in light of power rationing. On the macro front, Fed Chair Powell expressed that the employment market was still ideal and the goods prices have been on the rise due to supply difficulties, sending out dovish signals.
Trading Ideas:
–Zinc trading range for the day is 256.7-263.1.
–Zinc prices pared gains as global zinc market deficit declines to 6,600 T in July, ILZSG says.
–The ILZSG data showed a surplus of 11,000 tonnes, down from a surplus of 420,000 tonnes in the same period of 2020.
–The energy crisis in Eurozone intensified, which is likely to extend to countries all over the world but with varying degrees.
Courtesy: Kedia Commodities
Source: Comodity Online
