Breaking News

LME Zinc In Focus: Start Of An Uptrend Or Fall?

By CommoditiesJan 04, 2017 05:39PM ET

www.investing.com/analysis/lme-zinc-in-focus-:-start-of-an-uptrend-or-fall-200171493

LME Zinc In Focus: Start Of An Uptrend Or Fall?

By | Jan 04, 2017 05:39PM ET

Saved. See Saved Items.

This article has already been saved in your Saved Items

MZI

+0.18%

Add to/Remove from Watchlist

This time last year was the initiation of the great (99% increase) LME 3M zinc bullish trend. Tumbling prices had reached 1445 USD/ton on 01/08/2016 in spite of the extended fundamental comments about the extinction of mines. The reason why the bullish spark waited so long is the key to our analysis today.

It was only the Hedge Funds (in LME Commitment of Traders report mentioned as Money Managers) entering the Zinc complex with large long positions that time.

The price touched 2985 USD/ton on 28/11/2016 and then retreated.

Now the correlation between the LME Zinc COT Report Money Manager's Long Positions and the zinc price is increadibly remarkable. That correlation takes us to a point in space where technical analysis and fundamental analysis have no gravitational force.

After Tuesday's COT report, we are beginning to see some signs of divergence between these highly correlated items. Long positions retreating where as prices increasing which tells us that a correction might come in the near term.

Having underlined this point, we would like to draw your attention to the peak point in LME Zinc COT Long Positions chart. The peak point (in May 2015) of maximum held long positions ever was 100.171 contracts. Now latest LME report states a position of 81.039. So Zinc bulls does not have to worry. Although a correction may be expected in the near term, there is still some room to go until COT number touches its previous peak.

After a superficial evaluation, where can this roughly remaining 20.000 long contracts take the Zinc price to after a slight correction? We assume markets sometimes work with psychological resistance and support levels and at this point this would be 3000 USD/tonnes.

Zinc Daily Chart

Zinc Daily Chart

LME 3M Zinc Prices

LME 3M Zinc Prices

Related Articles

Will Gold Rally as Inflation and Tariff Concerns Mount? By Zain Vawda - Mar 10, 2025 1

Gold is feeling a bit of pressure at the start of the week as markets are cautious of what lies ahead. Rising tariff developments, recessionary fears and an uncertain geopolitical...

The Energy Report: Credit Where Credit Is Due By Phil Flynn - Mar 10, 2025 1

Treasury Secretary Scott Bessent said no one gave him credit or the administration credit for falling oil prices or lower interest rates. What that means is that Scott Bessent has...

Fawad Razaqzada

Gold Holds Steady Near Highs as Bulls Look to Push Above $3K With Eyes... By Fawad Razaqzada - Mar 10, 2025 2

Gold stays near highs with $3K within reach. US inflation data could fuel the next gold rally. Key levels: Support at $2900, resistance at $2950-$3K. Get the AI-powered list of...

Add a Comment

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:

Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
Only English comments will be allowed.
Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

I have read Investing.com's comments guidelines and agree to the terms described.

I Agree

Write your thoughts here

Are you sure you want to delete this chart?

Delete Cancel

Post

Post also to:

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.

<div id="comment">
				<div class="comment js-comment" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
    <div class="mainComment js-content">
       <div class="commentInnerWrapper">
        <a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody">
                					<span class="commentUsername">
                    	<a href="{userLink}" class="js-user-link js-user-name">{username}</a>
					</span>
                                <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
                <div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button" data-reg_ep="follow comment">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save"  data-reg_ep="save comment">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>
                 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div>             </div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="commentBigChart js-comment-chart" onclick="openViewChartPopup('{commentID}')">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
                            <a href="javascript:void(0);" id="commentFlag_{commentID}">
                                <span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
                            </a>
                        </div>
                    				</div>
					</div>
	   </div>
	</div>
	</div>			</div>
			<div id="reply">
				
    <div class="commentReply js-comment js-comment-reply" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
		<div class="commentInnerWrapper"><a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody js-content">
            				<span class="commentUsername">
					<a href="{userLink}" class="commentUsername js-user-link js-user-name" onMouseOver="">{username}</a>
				</span>
                        <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
			 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div> 			<div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button" data-reg_ep="follow comment">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save"  data-reg_ep="save comment">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>

</div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="replyBigChart displayNone js-comment-chart">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
				<span id="commentSmallChart{commentID}" class="commentSmallChart pointer js-comment-chart" onclick="openViewChartPopup('{commentID}')">
                    <img src="https://d1-invdn-com.investing.com/comments_images/{commentImageSmall}" width="116" height="52" alt="{commentAlt}">
                    <span class="chartMagnifyOverlay displayNone"></span>
                    <span class="searchGlassIcon chartMagnify displayNone"></span>
                </span>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
                            <a href="javascript:void(0);" id="commentFlag_{commentID}">
                                <span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
                            </a>
                        </div>
                    				</div>
					</div>
		</div>
    </div>
			</div>
			<div id="show-more-comments">
				<a class="showMoreComments block">
					<span class="arial_12 showArrowafter">Show more comments (<span class="js-amount"></span>)</span>
				</a>
			</div>
			<div id="show-more-replies">
				<a class="showMoreReplies block">
					<span class="arial_12 showArrowafter">Show more replies (<span class="js-amount"></span>)</span>
				</a>
			</div>

Are you sure you want to delete this chart?

Delete Cancel

Post

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

I feel that this comment is:

Spam

Offensive

Thank You!

Your report has been sent to our moderators for review

More Categories

1D1W1M6M1Y5YMax

	US 30	41,992.0	+79.7	+0.19%
	US 500	5,619.4	+4.7	+0.08%
	Dow Jones	41,911.71	-890.01	-2.08%
	S&P 500	5,614.56	-155.64	-2.70%
	Nasdaq	17,468.32	-727.90	-4.00%
	S&P 500 VIX	27.86	+4.49	+19.21%
	Dollar Index	103.770	-0.183	-0.18%

	Crude Oil WTI	65.96	-0.07	-0.11%
	Brent Oil	69.29	+0.01	+0.01%
	Natural Gas	4.463	+0.002	+0.04%
	Gold	2,899.30	-0.10	0.00%
	Silver	32.542	+0.012	+0.04%
	Copper	4.6528	+0.0073	+0.16%
	US Soybeans	1,011.38	-1.88	-0.19%

	U.S. 10Y	4.182	-0.031	-0.74%
	U.S. 30Y	4.516	-0.023	-0.51%
	U.S. 5Y	3.944	-0.030	-0.75%
	U.S. 3M	4.414	+0.120	+2.79%
	US 10Y T-Note	111.77	+0.48	+0.44%
	Euro Bund	128.00	+0.17	+0.13%
	10-2 Yield Spread	31.32	+4.15	+15.27%

	Apple	227.48	-11.59	-4.85%
	NVIDIA	106.98	-5.71	-5.07%
	Alphabet A	165.87	-7.99	-4.60%
	Tesla	222.15	-40.52	-15.43%
	Amazon.com	194.54	-4.71	-2.36%
	Netflix	866.68	-24.43	-2.74%
	Meta Platforms	597.99	-27.67	-4.42%

Most Popular Articles

Musk calls DOGE backlash 'tough sledding', but will push ahead for... By Investing.com - Mar 10, 2025 51

Asia stocks vulnerable to tariffs, but AI could drive growth - Goldman... By Investing.com - Mar 10, 2025 5

Stock market today: S&P 500 slumps as recession fears grip Wall Street By Investing.com - Mar 10, 2025 177

Bitcoin price today: dips below $80K on recession fears By Investing.com - Mar 10, 2025 6

BCA downgrades equities to underweight as US is heading towards... By Investing.com - Mar 10, 2025 11

More News

6 Markets Seeing Increasing Inflows Amid Rising Global Uncertainty By Ismael De La Cruz - Mar 10, 2025 3

1 Stock to Buy, 1 Stock to Sell This Week: DoorDash, American Eagle By Jesse Cohen - Mar 09, 2025 7

Could DOGE Cause a US Recession? By Claudia Sahm - Mar 08, 2025 57

Lattice Semi: Investors Who Missed This Sell Signal Are Now Counting a... By Chinmay Pandya - Mar 07, 2025 4

Gold Holds Steady Near Highs as Bulls Look to Push Above $3K With Eyes... By Fawad Razaqzada - Mar 10, 2025 2

More Analysis

Central Banks Rates

	Central Banks		Interest Rates	Next Meeting
		FED	4.50%	Mar 19, 2025
		ECB	2.65%	Apr 17, 2025
		BOE	4.50%	Mar 20, 2025
		SNB	0.50%	Mar 20, 2025
		RBA	4.10%	Apr 01, 2025
		BOC	3.00%	Mar 12, 2025
		RBNZ	3.75%	Apr 09, 2025
		BOJ	0.50%	Mar 19, 2025
		CBR	21.00%	Mar 21, 2025
		RBI	6.25%	Mar 10, 2025
		PBOC	3.10%
		BCB	13.25%	Mar 19, 2025