The November futures contract of zinc on the Multi Commodity Exchange (MCX), which has been in an uptrend since early October, broke out of the resistance at ₹200 last week.
Following this, it made a fresh high of ₹211.6 on Monday.
But then the contract started to move sideways i.e. for the past few trading sessions, it was largely trading between ₹208 and ₹212.
Currently trading around ₹210, the contract should breach the resistance at ₹212 to establish next leg of uptrend.
The overall trend is bullish and so the likelihood of the contract moving past ₹212 is high. Supporting the bullish price action, the daily relative index has been moving upwards and lies above the midpoint level of 50.
The moving average convergence divergence indicator on the daily chart has retained the positive slope over the past week and is pointing upwards.
Above ₹212, it is likely to rally to ₹220. But since ₹212 is a hurdle, traders can buy the contract with stop-loss at ₹208 if it breaks out of ₹212.
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