Commodity Calls

Key resistance ahead for MCX-Zinc

Gurumurthy K BL Research Bureau | Updated on January 11, 2018 Published on May 10, 2017


The Zinc futures contract on the Multi Commodity Exchange (MCX) has been moving in a sideways range, between ₹162a kg and ₹171 , for almost a month.

Within this range, the contract had risen in the past week and is hovering below the upper end of the range at ₹170. It was at a high of ₹170.7 on Tuesday and has come off slightly from there.

The contract is currently trading near ₹169. An inability to rise again from current levels and break above ₹171 decisively may pull the contract lower to ₹165 and ₹162 in the short term.

In such a scenario, the ₹162-₹171 sideways range will remain intact for some more time. But if the MCX-Zinc futures contract manages to rise decisively above ₹171 and the 200-day moving average resistance at ₹171.3 in the coming days, it can gain fresh momentum.

Such a break can take the contract higher to ₹175 initially. A further break above ₹175 will increase the likelihood of the contract extending its rally to ₹180 or even ₹185 levels thereafter.

The range support at ₹162 will continue to remain as a crucial level to watch.

The outlook will turn negative only if the contract declines below this support decisively. Such a fall will increase the downside pressure and drag the contract lower to ₹155 or even ₹150 going forward.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on May 10, 2017
This article is closed for comments.
Please Email the Editor