Comments
Zinc futures contract on the Multi Commodity Exchange (MCX) has been volatile in the past week. The contract rose to a high of ₹213 per kg initially, fell back to a low of ₹205.8 and then has reversed higher again over the last couple of days. It is currently trading at ₹214 per kg.
A crucial resistance is poised near the current levels in the ₹215-₹217 zone. Whether the contract breaks above this resistance region or not will decide the next trend. Inability to breach above ₹217 and a subsequent pull-back move in the coming days will keep the broader sideways range intact. In such a scenario, the contract can fall to ₹210 or even ₹205 in the short term.
On the other hand, if the MCX-Zinc futures contract manages to break above ₹217 decisively, it can gain fresh momentum. Such a break will mark the end of the prolonged sideways consolidation that has been in place since March. A rally to ₹222 can be seen initially. Further break above ₹222 will then increase the likelihood of the contract surging towards ₹230 levels thereafter. It will also increase the possibility of the contract targeting ₹240 levels over the medium term.
Trading strategy
Traders with a medium-term perspective can go long on a decisive break above ₹217. Stop-loss can be placed at ₹203 for the target of ₹240
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.