Zinc closed up by 0.68% to 2938.0 on 23 January 2021 and +1.51% on a weekly basis. Zinc momentum was last calculated at +50.0/100 indicating positive momentum. Zinc trend is +75.0/100 indicating a positive trend. Zinc momentum exhaustion is 1.7422 indicating Zinc is oversold.Zinc RSI is 51.6174 .
Zinc closed at 2938.0 on 23 January 2021. Zinc trend was last calculated at +75.0/100 (range: -100 to +100) indicating a positive trend based on MacroVar models. Zinc momentum was last calculated at +50.0/100 (range: -100 to +100) indicating positive momentum. Zinc momentum exhaustion is 1.7422 (normal range: -2.5 to +2.5, overbought values: greater than 2.5, oversold values: less than 2.5) indicating Zinc is oversold and a possible reversal is imminent. Zinc RSI was last calculated at 51.6174. Zinc moving averages were last recorded as follows: 1-month moving average: 2808.88 in an uptrend , 1-quarter moving average: 2674.29 in an uptrend and 1-year moving average: 2281.65 in an uptrend. Zinc annual return was last recorded at None%, daily return was last recorded at 0.68%, and weekly return was last recorded at 1.51%. Zinc histrorical 20-day volatility was last recorded at 21.7113%, Zinc alpha None, Zinc beta None and Zinc maximum drawdown was recorded at None%. MacroVar models monitor Zinc statistics based on historical data since 1970.
Momentum trading is used to capture moves in shorter timeframes than trends. Momentum is the relative change occurring in markets. Relative change is different to a trend. A long-term trend can be up but the short-term momentum of a specific market can be 0. If a market moves down and then moves up and then moves back down the net relative change in price is 0. That means momentum is 0. A short-term positive momentum, with a long-term downtrend results in markets with no momentum.
MacroVar Zinc momentum signal ranges from -100 to +100. The
Zinc momentum signal is derived as the mean value from 4 calculations for the China Import Dry Bulk Freight Index CDFI. The timeframes monitored are the following: 1 Day (1 trading day), 1 Week (5 trading days), 1 Month (20 trading days), 3 Months (60 trading days)
For each timeframe, the following calculations are performed: 1. Zinc return is calculated for the specific timeframe and 2. if the return calculated is higher than 0, signal value output is 1 else signal value is -1.
Zinc BADI momentum signal is the aggregate of the the 4 values. A technical momentum rollover is identified when
Zinc momentum signal moves from positive to negative value or vice-versa.
Zinc trend signal ranges from -100 to +100. Zinc trend indicator is the mean value of the 8 calculations described below. The timeframes monitored are the following: 1-month (20 trading days), 3-months (60 trading days), 6-months (125 trading days), 1-year (250 trading days)
For each timeframe, the following calculations are performed: 1. Zinc Closing price vs
Zinc moving average (MA) calculation: If
Zinc is greater than Zinc MA value is +1, else -1, 2. Zinc Moving average slope calculation: if current
Zinc moving average is higher than the previous MA,
Zinc upward slope +1, else -1
Zinc trend model can be used as a trend strength indicator.
Zinc trend strength values ranging between +75 and +100 or -75 and -100 show strong trend strength.
A technical trend rollover is identified when Zinc trend strength indicator moves from positive to negative value or vice-versa.
The most important trend indicator
The Zinc 52-week simple moving average and its slope are the most important indicators defining a market’s trend.
Zinc is in an uptrend when Zinc price is higher than the 52-week moving average and the
Zinc 52-week moving average has an upward slope. If fundamentals of the market have not changed and the moving average slope is still in uptrend, a price drop signifies a market correction and not a change of trend. Traders should watch oscillators like the
Zinc oscillator and Zinc RSI to buy the dip and still follow the trend. The moving average slope turn signifies a change of trend.
The Zinc oscillator estimated by MacroVar is the z-score of the current
Zinc price versus Zinc 1-year simple moving average price. The formula for the
Zinc oscillator is:
Zinc oscillator = (Current Price – 250 trading days
Zinc simple moving average price) / (250 days Zinc price standard deviation)
Zinc oversold conditions
Zinc is oversold when it is subject to a persistent downward pressure due to extreme fund outflows. When the
Zinc is oversold it is often due for a rebound. Values of the
Zinc oscillator lower than -2.5 signify oversold conditions. It must be noted that the
Zinc oscillator must be analyzed ibn conjunction with the rest of
Zinc quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the
Zinc overbought conditions
Zinc is overbought when it is subject to a persistent upward pressure due to extreme fund inflows. When the
Zinc is overbought it is often due for a correction. Values of the
Zinc oscillator higher than +2.5 signify overbought conditions. It must be noted that the MacroVar oscillator must be compared to the rest of the
Zinc quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the RSI.
Zinc RSI Indicator
The RSI indicator measures the speed and change of price movements. The RSI indicator oscillates between 0 and 100. RSI is a useful indicator during normal trending market conditions when an asset price oscillates around its trend value. During big moves and strong trends however, like short squeezes or price spikes RSI and other oscillators don’t work.
During normal trend market conditions and when Zinc is in a downtrend RSI values between 50-60 signify overbought conditions before the downtrend is ready to resume. During
Zinc uptrend, RSI values of 40 to 50 signify oversold conditions before the uptrend is ready to resume. It is strongly not recommended to enter a position when the RSI is “overbought” and falling or vice versa.
MacroVar calculates Zinc returns for the following timeframes: Daily, Weekly, Monthly, Yearly. The formula for calculating returns is: