Zinc futures price has broken the “Decisive Trading Zone” which I concluded in my last analysis “Zinc: A Move Inside The Decisive Trading Zone From August 6th-31st” on the upper end after a month long range-bound consolidation.
I find this rally, a breakout from the consolidation phase, seems to be a short covering rally created by the Bears. I find the final direction of this move will get confirmation after its sustenance above the level of $2945 till the weekly closing for the Week of August 6th, 2017, which may finally open new avenue for a new trading range for the zinc futures price in the days ahead. But, I find myself to be suspicious about the strength of this rally, if it does not sustain and moves below $2898 and return back into ‘Decisive Trading Zone” during this Week of August 6th , 2017.
Have a Nice Trading Week.