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LME Zinc prices have witnessed a decisive trend reversal from the key base around 2826, confirming a bullish breakout from the symmetrical triangle formation that marked the beginning of an upward trajectory. The breakout was later followed by a continuation pennant pattern, reflecting sustained buying momentum and reinforcing the strength of the prevailing trend. At present, prices are consolidating within a complex inverse head and shoulder formation, with the neckline resistance placed near $3050. A convincing breakout and daily close above this level may trigger a sharp upside move towards the projected target zone of $3158–$3186.
From a technical standpoint, Zinc continues to trade above its 20- and 50-day exponential moving averages, maintaining a strong bullish alignment. The trendline slope remains positive, while the MACD indicator has entered the positive territory, confirming ongoing upward momentum.
On the downside, $2990 remains a key invalidation point — a breach below this could negate the bullish setup and invite short-term profit booking. Meanwhile, Zinc’s backwardation, which recently widened to $400 before easing to $200, continues to pose challenges for traders and end-users. However, falling LME inventories are lending fundamental support and adding to the bullish sentiment in the market.