The downturn from the highs of 2018, when zinc was worth about $ 3600 per ton, lasted throughout the previous year until September of this year, with a perfect test of $ 2200. This level represents a medium and long term support of good value for several reasons:
- It is from this area that the red line joins the descending minimums from June 2017 / August-September 2018 and now August / September 2019;
- Transit area of 61.8% Fibonacci retracement;
- The months of August and September form a (Japanese) pattern of potential reversal, called “Piercing line”, with a 50% of probable success (even if currently the prices are violating to the upside the maximum of September at $ 2400 – price of confirmation);
- On a weekly basis it shows a positive divergence of the “MACD” indicator, a symptom of a marked slowdown in the current climate of medium and long term negativity.
In this context, we cannot rule out a first recovery of prices towards the subsequent resistances placed in the $ 2500 area in the first instance, the level above which the ascent will be able to extend further towards $ 2700 and beyond.
ZINCO 3 MONTH $ MONTHLY
ZINCO 3 MONTH $ WEEKLY