MCX Zinc trades positive

19 June 2008 09:49:18



MCX Zinc trade positive following Southern copper crop news, registered days high of 84.35 and closed at 84.10 with net gain of 5.06% from previous closing.

Intra day low registered near 80.10

Zinc reacted to the upside on news that Southern Copper Corp. may be forced to temporarily close operations at its Ilo smelter and refinery and at its two copper mines in Peru because of protests that have cut supplies. Company officials have estimated that Southern Copper's operations in Peru will produce 330,000 tons of copper this year.

Zinc inventories at LME, decreased by -25 MT to 143825 MT.

MCX Zinc June - Technical Outlook:

The daily stochastics have crossed over up which is a bullish indication. The prices closed below short term and medium term EMA, which supports bears. MACD is heading downwards in positive region, showing decrease in bullish momentum.

Technical have turned neutral to bullish and market is expected to remain positive above 85.6 levels. If sustain above this level can see a rally towards 87.1 and 89.9, If market sustains below 82.9 can see a further fall towards 81.4 and 78.6

Recommendations- MCX Zinc June: Buy at 83.80-83.50 Target 85 and 86.20 SL 82.50

MCXARUN
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