Limited downside action slows Zinc decline despite fresh lows

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Zinc slides 2.13% today to $3,562

Highlights

ZS/USD faces persistent selling pressure, trading below key short- and medium-term moving averages but above its long-term trend support.
Momentum and breadth indicators remain firmly bearish, with oversold readings hinting at possible short-term stabilization.
Expected trading range over the next 2–3 days is $3,536 to $3,589, with a 71% probability of further downside unless $3,605 resistance is reclaimed.

Bearish signals dominate as key resistance limits recovery

ZS/USD is trading below the MA-20 at $3,611 and the MA-50 at $3,597, with price retaining support above the MA-200 at $3,262. The Ichimoku Kijun is positioned at $3,605, presenting a close resistance point. Momentum indicators are negative, as both the MACD and Awesome Oscillator confirm a bearish setup and the ADX reads a neutral trend strength. RSI sits at 32.2, and both Stoch RSI and CCI signal oversold conditions. BBP is also oversold, which reflects persistent selling dominance and highlights near-term downside exhaustion, though oscillators suggest potential for minor stabilization.

Downside risk elevated as trading range tightens

In the short term, ZS is expected to remain constrained within a volatility band of $3,536 to $3,589 over the next 2–3 days. The probability for a downward break is estimated at 71%, with a 29% chance of a rebound to the upside. The base scenario points to continued sideways action inside this range, while a move above $3,605 could trigger a bullish reversal and a drop below $3,536 would expose the asset to further downside risk.

Anton Kharitonov, expert at Traders Union, observes that technical signals remain weak for zinc, as the asset stays below its short- and medium-term averages. Bearish momentum dominates and indicators point to persistent selling, but downside exhaustion is emerging near support. He believes the base case is continued sideways trading between $3,536 and $3,589, while a break below $3,536 could accelerate losses. "Until zinc reclaims $3,605, I remain defensive and see no reason to turn optimistic here."

Earlier, analysts noted that cross-border economic activity and robust trade flows continue to play a significant role in supporting U.S. commodity markets and broader industrial sectors. In light of zinc’s prevailing bearish setup and dominant selling pressure, traders should focus on the potential for a decisive move if ZS/USD breaches either side of the established $3,536–$3,589 volatility band, with downside risk especially prominent.

Source of Data: ZS Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.