However, the price action over the past few sessions show that the downward momentum is fading. In fact, zinc futures has a rising trendline support at around ₹220.
The February futures of zinc bounced off this level and is now hovering between ₹222 and ₹223. We expect zinc futures to see an upswing on the back of the support at ₹220.
The chart indicates that the contract has its nearest resistance at ₹228, where both 20- and 50-day moving averages coincide. The probability is high for zinc futures to touch ₹228 in the near-term.
Traders can buy zinc futures at the current level of ₹223 and add longs if the price dips to ₹221. Place stop-loss at 218. Book profits at ₹228.