Chart of the day: What a month for Shanghai zinc
It’s been a month since we looked at Shanghai zinc futures prices and what a month it’s been. Soaring through our target at 22,000 yuan per tonne with ease, volume’s been good though open interest has tailed off slightly as investors take profits. Observed volatility is back at the sort of levels we had been used to between 2008 and 2011, underlining just how subdued the market became in 2015 and earlier this year. Because bullish momentum is at a record high, and despite the relative strength index being more overbought in over two years, there might just be a few more pips to add to the phenomenal rally in the final quarter of this year; target 25,000.
Nicole Elliott is a technical analyst