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The Zinc futures contract on the Multi Commodity Exchange (MCX) has resumed its overall medium-term uptrend that has been in place since this June. The contract is currently hovering at the key resistance region of ₹204-₹205 per kg and is trading at ₹204.5 per kg. The price action on the daily chart suggest that the possibility of the stock breaching above ₹205 in the coming days, is high. Such a break will increase the likelihood of the contract surging to ₹210 and ₹213 in the coming weeks. The region between ₹213 and ₹215 is a key long-term trend resistance which is likely to halt the current rally. A downward reversal from that resistance region can pull the contract lower to ₹205 levels thereafter. High-risk appetite traders with a medium-term perspective can go long on dips near ₹202. Accumulate long positions near ₹199. Stop-loss can be placed at ₹196 for the target of ₹213. Revise the stop-loss higher to ₹205 as soon as the contract moves up to ₹208.
The region between ₹198 and ₹195 is a key support for the contract. The outlook for the MCX-Zinc futures contract will turn negative only if it declines decisively below ₹195 in the coming days. Such a break can drag the contract lower to ₹190.
Note: The recommendations are based on technical analysis and there is a risk of loss in trading
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