There has been no short of volatility this year so far for zinc i.e., the futures counter has been witnessing considerable amount of price swings since January. The continuous futures contract of the metal on the Multi Commodity Exchange (MCX) initially dropped to ₹201.4 but then quickly reversed and topped ₹241 towards the February-end. A decline followed, but it was arrested by the support at ₹210 in early March.

On the daily chart, the price action of the April contract has largely moved sideways since the beginning of March wherein it was moving within the price band of ₹215 and ₹223. But before a couple of weeks, the contract broke out of the resistance at ₹223, indicating that the contract could see a leg up. On the similar lines, the price has been rising but gradually and the contract is now hovering around ₹230.

But since the bias is bullish, the contract will most likely breach ₹230 sooner or later.

Traders can be bullish on MCX zinc April futures. But since ₹233 is a hurdle, go long with stop-loss at ₹225 if ₹233 is breached. Above ₹233 the contract can touch ₹240 and could even rally to ₹246.

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