After bouncing from the support band between ₹181.05 and ₹182.65 during the past week, the October expiry futures contract of Zinc in Multi Commodity Exchange of India faced resistance at ₹186 levels. Noticeably, the contract continues to trade below the 21-DMA — at ₹186.2 — keeping its short-term view negative. Rallies seemed to be capitalised by sellers as the commodity started to decline soon after testing the resistance at ₹186. It is currently hovering at ₹181.

On the back of existing weakness, if the contract breaks below the support level of ₹181, the price will most likely tumble to ₹177.3 in coming days. Subsequent support below that is at ₹174. However, if it manages to hold at ₹181, the contract will face hurdles at ₹186.5 and then at ₹191 levels. The major trend continues to be bearish and the contract price should rise above ₹191 levels for the commodity to reverse the ongoing bearish trend.

Three-month rolling forward contract of Zinc in London Metal Exchange continues to be buoyed by the support at $2,300 and is currently trading at $2,320 levels. Even though the price traded briefly below $2,300, the contract seems to be attracting buyers at that level. The 21-DMA is attempting to cross above the 50-DMA showing bullish signs.

So, on the upside, the price may appreciate towards $2,400 levels and in case if it moves beyond that level, it may rise to $2,450. On the other hand, a fall below $2,300 will take the contract price to $2,200 levels.

The bearish trend is evident on the chart as the price is attempting to make new lows. Hence, in the short term, the contract can be sold on rallies with stop-loss at ₹191. Although MCX-Zinc is technically bearish, some positive signs observed in LME price should not be ignored. So, strictly keep maintaining stop loss.

Related Topics