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The Zinc futures contract traded on the Multi Commodity Exchange (MCX) made a high of ₹189.7 per kg on Friday and has come-off from there.
It is currently trading near ₹183. Key support is in the band between ₹182 and ₹181 which is holding well. The next important support is at ₹179. As long as the contract sustains above ₹179, a rise to ₹190 is possible in the coming days. In such a scenario, a range bound move between ₹179 and ₹190 can be seen for some time. Within this range, the bias would remain bullish. A subsequent break above ₹190 can boost the bullish momentum. Such a break can trigger a fresh rally to ₹200 and ₹205 once again.
Short-term traders can make use of dips to go long near ₹181. Stop-loss can be placed at ₹176 for the target of ₹190. Revise the stop-loss higher to ₹184 as soon as the contract moves up to ₹188.
The contract will come under renewed pressure if it declines below ₹179 decisively. Such a break, though looks less probable at the moment can take the MCX-Zinc futures contract lower to ₹175 initially. It will also increase the possibility of the contract testing ₹170 levels once again.
Note: The recommendations are based on technical analysis and there is a risk of loss in trading
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