Overnight, LME zinc was closed for the summer bank holiday.
The most-traded SHFE zinc 2410 contract opened at 24,180 yuan/mt. At the beginning of the session, SHFE zinc quickly touched 24,200 yuan/mt, and then fluctuated downward below the daily moving average as bears entered the market. Subsequently, bulls took profits and exited, leading SHFE zinc to plunge to a low of 23,920 yuan/mt. After bears exited, SHFE zinc rebounded from the low, recording a "V" shape reversal, and finally closed at 24,105 yuan/mt, an increase of 55 yuan/mt or 0.23%. Trading volume decreased to 75,377 lots, and open interest decreased by 1,678 lots to 124,000 lots. Overnight, SHFE zinc turned from positive to negative, with the upper Bollinger Bands forming resistance. The \supply and demand for zinc remained weak, with social inventory continuing to deplete. Additionally, expectations of interest rate cuts have also boosted zinc prices, which are expected to operate strongly.
