LME continues to play a leading role, with SHFE zinc recording a bullish candlestick [SMM zinc futures brief comment]

SMM News on August 5:

       The most-traded SHFE zinc 2509 contract opened at 22,295 yuan/mt. After the opening, bulls increased their positions, driving SHFE zinc to fluctuate upward above the daily average line. Subsequently, bears reduced their positions, allowing SHFE zinc to continue rising and touching a high of 22,395 yuan/mt. It eventually closed up at 22,380 yuan/mt, gaining 125 yuan/mt or 0.56%. Trading volume decreased to 85,449 lots, while open interest fell by 4,253 lots to 98,472 lots. SHFE zinc recorded a bullish candlestick, with the 5/20-day moving averages above exerting pressure and the 40/60-day moving averages below providing support. Currently, domestic macro sentiment is being gradually digested. Driven by fundamental factors, SHFE zinc is expected to lack upward momentum. However, overseas inventories continue to decline, providing strong support at the bottom of the LME market. Under the influence of the correlation between SHFE and LME, it is expected to offer some support to SHFE zinc as well.