Zinc prices turned negative from 14 Feb 2023 high 277.85. Today, it is trading neutral at 269.05 as compared to previous day’s close of 268.80. Asian major currency trading flat amid China measures to support economic news.
As per our weekly report prices almost reached near to first predicted level 266. Second level was at 262. Sell on rise initiated around 273-274 level.
ZINC prices crashed significantly following the jitters of US data which released in last session. Base metal continued to be under pressure as markets bet on a demand recovery in major importer China.
After yesterday’s drastic fall ,base metal trading neutral after major currency turned little. News that China outlined more spending measures to boost economic growth restricted some losses. However, sentiment constrained by concerns over rising U.S. interest rates, following stronger-than-expected economic data.
The Chinese yuan recovered slightly as the People’s Bank said it will undertake more measures to shore up economic growth. Including increased lending and support for the property market. Separately, China’s state planning body and finance ministry also said they will roll out policies to boost spending. And unlock consumer savings that built up during the COVID-19 pandemic.
The measures helped spur some optimism over a Chinese economic recovery, after recent data showed a middling rebound in inflation and manufacturing activity despite the recent lifting of anti-COVID measures.
Technical – Zinc at crucial support 265.50
MCX Zinc future turned negative from the peak 277.85, 14 Feb high. As per our weekly report prices almost reached near to first predicted level 266. Second level was at 262. Sell on rise initiated around 273-274 level.
On the above daily chart, ZINC future trading on a verge of crucial support 265 a break below only will extend the correction. And the prices may test next predicted level of 262.
Alternatively, if it does not break then there would be probability for a bounce back. And ZINC prices appear to test 272-275.50 in near future.
From technical aspects, the trend still looks weak. But, any supportive fundamental news could support base metal prices again. Hence follow the above levels.