Having reached our target of 19,000 yuan per tonne last week, what next for this top-class performer? Open interest in Shanghai zinc futures peaked in early September, suggesting many may have missed out on this latest increase in prices. Volume has been picking up since then, so despite being overbought, counter-intuitively there might be a bit more upside. Momentum is clearly bullish, as are all moving averages and the MACD. The weekly close above 18,800 yuan was a significant break. Observed volatility is close to this year’s highest levels but it pales when compared to the sort of peaks between 2007 and 2011. Levels to watch on the way up are 20,100 yuan, 21,100 yuan and major resistance at the psychological 22,000 yuan.
