Zinc suffered a price shake-out last week caused by risk reduction on increaseduncertainty over Greece and as there seemed no stopping China’s stock marketcorrection. Zinc prices fell past the March low of $1,981/tonne, all the way down to$1,906/tonne on Wednesday – their lowest point since December 2013. Trading onTuesday and Wednesday was particularly choppy with prices spiking lower on bothdays, but by Wednesday’s close the market had recovered to $1,980/tonne and it hasnot looked back since, rising to a high of $2,080.50/tonne on July 13. The move hasswung the technical indicators higher so for now the rebound looks robust. Giventhe perception that the fundamentals are set to tighten later in the year and duringnext year, bulls would have been surprised that prices fell as fast as they did. Indeed,judging by the strength of this latest rebound, it looks as though prices overshot on thedownside.
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