Market resilient given China worries, stock rise

摘要

Having rebounded strongly two weeks ago, zinc prices spent most of last weekconsolidating the gains, although they did manage to break higher on Thursday toreach $1,842/tonne. That is a rebound of 10% above the multi-year lows of $1,673/tonne seen on Wednesday, August 26. The downtrend still dominates the chart withtwo powerful down-legs seen since the May peak at $2,404.50/tonne. With pricesnow consolidating, it is unclear whether the rebound has run its course, or prices arepausing in a potential bull-flag that could lead to another up-leg. Given that thedowntrend line is at $1,905/tonne, we would not be surprised to see the reboundextend, but it may be that the large stock increase reported on Monday means potentialbuyers will continue to wait on the side lines in case prices have further to fall.