SMM, May 22: The most-traded SHFE zinc 2607 contract opened at 24,720 yuan/mt. After the opening, SHFE zinc dipped to a low of 24,675 yuan/mt, then bulls increased their open interest, pushing SHFE zinc continuously higher to fluctuate above the daily moving average, touching a high of 24,935 yuan/mt during the session, and finally closed up at 24,865 yuan/mt, gaining 200 yuan/mt or 0.81%. Trading volume increased to 49,676 lots, and open interest increased by 4,625 lots to 99,206 lots. SHFE zinc posted a bullish candlestick today, with the upper Bollinger Bands rail exerting resistance above and the 40/60-day moving averages providing support below. From the perspective of China's fundamentals, zinc ore supply remained tight, but end-use demand was relatively weak. Meanwhile, domestic zinc ingot inventory remained at high levels. SHFE zinc faced resistance above and support below, and prices were expected to hover at highs in the short term. Attention should be paid to macro changes.
