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Friday, June 7, 2013
Technical Analysis – Zinc – Runs into overhead supply may correct lower.
Zinc stepped up a gear a week ago – prices have cut up through various resistance levels to set a high so far at $1,970. This took out the former resistance at $1,961.75 from March 25.
Prices are now consolidating below yesterday’s highs and the stochastics have crossed lower intraday, which suggests there may be more consolidation in the near term. The MACD remains strong so we see this as just a pause rather than the end of the rally.
Our next upside target is $2,012 if it crosses $1970
Zinc is looking good but it is back at the top of the range so we may well see selling cap the advance for a while.
ZINC could correct lower to $ 1890-95 range before deciding it's next move.