bearish action last few hours, page-49

re: chart of zinc Guys, I think you are missing an important aspect of Gann's argument.

Spike highs are driven by speculation not economics fundamentals.

In the zinc market there are two types of buyers. Those who are end users and those who are speculators. The speculators are the ones who will drive zinc to its absolute peak for this cycle, a price that will be far beyond what end users are willing to pay.

The question then is what will be the spike high? For all of the fundamental reasons listed by yourselves I don't think we have seen it yet. But once we have the price will retreat very significantly as Gann is saying.

Given that 50-60 cents/lb has been the long term price level and its currently at $2+, well there is a heck of lot of room for supply to move to push to the inevitable glut phase.

Further serious zinc supply is mostly years away (if UCL can keep Mehdiabad this is the only project in the pipeline big enough to affect supply in the next 3 years). We will enjoy healthy prices for some time to come if not at the spike high peak, whatever that will be.

This is the time for ZFX to 'make hay while the sun shines' and secure their future as a producer for decades to come.