BWR, a major zinc producer, (BWR-T), is topping out - check it out on canada-stockwatch. I think it will find support at around $6.40 or so, but it may be traders are anticipating a correction around here.
How do short-sellers drive the price up? If their short-selling becomes widely known, the spot price will rise in anticipation of them being forced to eventually BUY the zinc, to cover their sales! If the people buying LONG are in far greater numbers than the short-sellers, you have a rising zinc price, I think. Once the short-sellers have covered their earlier sales at horrendous losses to themselves, the price of zinc will fall back again, perhaps to a higher level, due to ripple effects.
Anyways, that's my best shot at it! :)
Harry K. |
