The December futures contract of zinc on the Multi Commodity Exchange (MCX) is in an uptrend since early October. The price bounced from about ₹175 and headed north to mark a high of ₹224.35 in November. But the upthrust slowed and the contract started to move along a sideways trend i.e. it was largely oscillating between ₹213 and ₹224 since past four weeks. Hence, despite the overall trend being bullish, the contract should breach the resistance at ₹224 in order to establish next leg of uptrend.

Since the price stayed flat over the past few weeks, indicators like the relative strength index (RSI) and the moving average convergence divergence (MACD) on the daily chart has come off from their respective peaks. That is, both the indicators has been moving down gradually. However, they continue to hover in their respective positive territory.

If the uptrend gains steam and breaks out of the range, it can probably rise to ₹236. A breach of this level can even lift the contract towards ₹250. But prolonged consolidation can increase the likelihood of a reversal. In case if the contract slips below the support of ₹213, the outlook can turn bearish. Support levels below ₹213 can be spotted at ₹208 and ₹205.

Even though the major trend is bullish, the contract faces a significant hurdle at ₹224. Similarly, there is a considerable support at ₹213. Considering this, traders can stay on the side-lines until either of ₹213 or ₹224 is breached.

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