Zinc intraday

Zinc remains neutral to bearish
11 June 2008 10:27:11

Zinc fell by the exchange-imposed daily limit in Shanghai, following declines in prices on the London Metal Exchange as the dollar rose, curbing demand for raw materials as an alternative investment.

Zinc futures fell by the exchange- imposed daily limit to a record low in Shanghai, tracking declines on the London Metal Exchange as the dollar rose and high inventories weighed on prices.

Stockpiles of zinc in London Metal Exchange warehouses rose for the first time in five days yesterday to 143,250 metric tons, up 61 percent since the start of the year. Zinc inventories in Shanghai fell 408 tons to 68,250 tons last week, still 25 percent above levels at the start of the year.

The Dollar Index, a weighted measure against the euro, yen, pound and three other major currencies, rose for a second day after Federal Reserve Chairman Ben S. Bernanke said risks to the U.S. economy have diminished, prompting traders to increase bets on higher interest rates.

MCX Zinc June - Technical Outlook:

The daily statistics have crossed over down which is a bearish 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 are neutral to bearish signalling sideways to lower prices in the near term. Initial support for the market is around 82.2 level. If broken can see further fall to 81.2 and 80.0, If market holds above 83.4 further rally can be seen towards 84.4 and 85.6

Recommendations- MCX Zinc June: Sell at 84 Target 82 and 80 SL 84.95


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