Zinc futures November expiry on the Multi Commodity Exchange (MCX) broke out of the ₹219-230 range last week by closing at ₹223.6 on Friday. This has increased the odds of prices going up further.
According to the daily chart, the nearest resistance is ₹230. Just above this is another hurdle at ₹234. Hence, the price band of ₹230-234 can block the bulls from lifting zinc futures beyond these levels. Resistance above ₹234 is at ₹240.
But if the contract falls from the current level, it could find support at ₹223. The 20-day moving average support lies at ₹221. Support below ₹221 is at ₹219. That said, the likelihood of the contract falling below ₹221 this week is low.
Broadly, the inclination will be bullish for zinc futures and so traders can consider long positions.
Buy zinc futures at the current level of ₹224. Target and stop-loss can be at ₹230 and ₹221 respectively.