Zinc – Prices could reverse in the short term

After 3 weeks of the zinc price consecutive rise, the fourth week (the current one) is creating a Japanese candle called shooting star.

This pattern does not have the same power as the other stars signals, however the prices are right behind an important price level (2900$/ton area).

In fact, it can be seen that, on a weekly basis, prices have tried to break up this level (long upper shadow) but have been quickly rejected.

This indicates that the 2900$/ton area is a level that is well observed by the market and that may favor short-term reversals.

This movement, however, could have a temporary nature. In fact, it should be remembered that the medium-term trend is still set to a decidedly upward trend and that a direct and strong break up of the $2900 level could trigger new ascents of the metal.

Translated with www.DeepL.com/Translator (free version)