Comments
Zinc futures, which has been moving in a narrow range on the Multi Commodity Exchange (MCX) since the beginning of July, has seen a breakout.
After oscillating between ₹212 and ₹216 for nearly two weeks, the contract has surpassed the ₹216-levels, opening the door for further rally. The contract is currently hovering around ₹218.
Despite the resistance at ₹223, there is a good chance for zinc futures to rally to ₹230 over the near-term.
A breach of ₹230 can turn the medium-term trend positive and the contract might even rise to ₹250.
On the other hand, if the contract declines from the current level, it has a dynamic rising trendline support. Horizontal supports are at ₹210 and ₹206.
Trade strategy
Since the contract has seen a fresh breakout, the probability of a rally is high.
Against this backdrop, one can buy zinc futures at the current level of ₹218. Add more longs if the price dips to ₹215, with the stop-loss at ₹208.
Shift the stop-loss to ₹218 when the contract touches ₹225. Book profits at ₹230.
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.