Rallies have tended to follow major down-spikes

摘要

Lead prices set fresh lows last week at $1,618.50/tonne as markets generally sold off againon the back of ongoing weakness in China, especially Chinese equities. Prices have sincerebounded strongly, reaching a high of $1,742/tonne on September 1. But compared withthe May peak of $2,162/tonne, prices remain weak and oversold. The rebound cameabout as there was a bit of a recovery in Asian markets towards the end of last week,but somewhat encouragingly lead prices have held on to their gain on Monday, eventhough equity markets have become jittery again. Given that rallies in lead have tendednot to last, it will now be interesting to see if lead prices can build on the three up daysthey have had since last Thursday. Above Monday’s high of $1,742/tonne is the resistancefrom $1,767/tonne from around August 10.