Chart of the day: China zinc prices rise and shine
Some might prefer: zinc and think. In a world where we have become used to talk of weak commodity prices, do not believe everything you hear. Zinc futures prices in China have been rallying steadily since November and rising open interest since mid-May suggests wholesale users have taken notice. With the metal trading at the best levels in almost a year, the neat series of measured steps higher suggests the move has further to go with a test (and potentially a serious break) of secular trend-line resistance highly likely. Moving averages are supportive, as are new trend-line support and the flat-topped Ichimoku cloud. The lagging line faces negligible resistance from the skinny cloud in the coming month. Onwards and upwards!
Nicole Elliott is a technical analyst