🔼 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.
Start investing today or test a free demoOpen account Try demo Download mobile app Download mobile app
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.