Comments
The zinc futures contract on the Multi Commodity Exchange (MCX) has risen sharply in the past week breaking above the key resistances at ₹222 and ₹225 per kg. The contract has surged over 3 per cent in the past week and is currently trading at around ₹231. A crucial trend-line resistance is poised at around ₹231 and the contract is currently hovering at this hurdle. Whether the contract manages to move further higher or reverse lower will be key in deciding the next move.
If the contract manages to sustain higher and gains momentum, there is a strong likelihood of the current upmove extending in the coming days. In such a scenario, the contract can rally towards ₹240 or ₹242 in the coming weeks.
On the other hand, if it fails to get strong follow through buying from current levels, it can fall in the short-term. A pull-back move in the coming days can drag the contract lower towards ₹225 and ₹222 again. In that case, a range-bound move between ₹222 and ₹231 is possible for some time. A breakout on either side of ₹222 or ₹231 will then decide the next trend.
Traders can stay out of the market at the moment and wait for a clear trend and trade signal to emerge.
Note: The recommendations are based on technical analysis and there is a risk of loss in trading.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.