I would say negative fund sentiment with these two double tops...

I would say negative fund sentiment with these two double tops since it came around the time of copper taking a hammering and zinc cancelled warrants were rocketing down as well as the Chinese dumping high grade material onto the Shanghai market the drawdown rate had consequently slowed a little but seems to be picking back up again with the apparent realisation that the Chinese may have been manipulating the price down with that dumping.

If reports re their stockpiles getting low are on the mark they will have to come back into the market and they were hoping it would be at a lower price.Trouble is zinc supply is so tight that it doesnt take much buying to move the price back up again as per the last few days and its almost back onto its upward trend line that it departed from with those double tops.

Analysts are now talking an average zinc price of around $2/lb in 2007 with maybe $5,400/lb (March/June 2007) attainable IF the stockpile stays on its downward spiral.

d.