[SMM Zinc Morning News] Cross Line with strong Resistance above Zinc

SMM, 16 April:

Overnight, EIA crude oil stocks surged nearly 20 million barrels last week, IEA:2020 annual global oil demand fell 9.3 million barrels a day from the previous year, crude oil fell again, or triggered market pessimism; Fed Brown Book: the economy has fallen significantly in recent weeks, with the worst monthly retail sales rate recorded in March. Sources: the US small Business Assistance Program will run out of money. Trump: how the states will restart the economy on Thursday. U. S. macro data have weakened under the impact of the epidemic, but if there is a positive news about restarting the economy, it will boost the market. Overnight, Lun Zinc opened at 1929 US dollars / ton. At the beginning of the day, driven by domestic strength, the bulls entered the market as a whole. Lun Zinc rose by 1942 US dollars / ton, but was suppressed by the upper 40-day line, empty into how flat, Lun Zinc fell rapidly, probed down 1905 US dollars / ton, and entered the night market. Lun Zinc found support on the 10th line, concussion and upward, the center of gravity moved up to 1930 US dollars / ton, and finally closed down at 1927 US dollars / ton, down 3 US dollars / ton. Trading volume decreased by 5613 hands, while positions increased by 4748 hands to 221090 hands. Overnight zinc recorded a cross line, the lower Brin Road middle track into a support, the upper resistance 40 day line. Overnight lme inventories rose 2450 tons, or 2.52%, to 99750 tons, and LME inventories rose to high levels again. Today, the United States will announce how states will restart their economies. If the recovery plan is good, it may boost zinc prices in the short term, but as the epidemic continues, the global economy will face a longer and larger contraction. In the long run, zinc consumption will remain pessimistic. It is expected that the space above Lun Zinc is limited, and the price of Lun Zinc is expected to operate in the range of US $1900-1950 / ton. On the domestic side, with the resumption of production at downstream and terminals, and the existence of rush work at some terminals, the social bank will be driven to the warehouse, but the export impact will be gradually transmitted to China, and we still need to pay attention to the intensity and duration of going to the warehouse. It is expected that the Shanghai zinc 2006 contract price will run in the range of 15500-16000 yuan / ton, and the domestic Shuangyan zinc contract will increase the May contract by 100-120 yuan / ton.

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