🔼 Zinc jumps to 4-month high on upbeat reports from LME
ZINC is rallying 6% today and is trading at the highest level since May 2023. Base metal price surged to a 4-month high following media reports on strong demand in Asia. Namely, it was reported that orders for zinc in warehouses tracked by London Metal Exchange (LME) increased by 15,875 tonnes, to 48,150 tonnes. This was the sharpest increase in requests for metal in 2 months and requests are said to be driven by traders from Singapore. Zinc inventories at LME and Shanghai Futures Exchange are at extremely low levels, creating risk of abrupt spot price jump should we demand recover stronger than expected. Other base metals are also trading higher with COPPER and ALUMINIUM trading almost 2% higher and NICKEL adding 1.5%.
Taking a look at ZINC chart at D1 interval, we can see that price of this base metal jumped above the 2 575 resistance zone today, leaving a trading range in which it was trading since April 2023. Textbook range of the upside breakout from this range suggests possibility of an upward move to as high as 2 900 area. However, in order to reach this area, bulls would need to clear 200-session moving average (purple line) as well as 2 850 resistance zone first.
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Source: xStation5
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