Comments
The Zinc futures contract traded on the Multi Commodity Exchange (MCX) seems to be forming a base above ₹260 per kg. The contract fell to a low of ₹266.75 last week and is attempting to bounce. It is currently trading at ₹274.65 per kg.
Outlook
There is a resistance at ₹280-₹282. The contract has to rise past ₹282 decisively to boost the bullish momentum. Failure to rise past ₹282 and a pull-back can drag the Zinc futures contract down to ₹265 and ₹260 again. However, a sustained fall below ₹260 is less likely.
From a bigger picture, as long as the Zinc contract trades above ₹260, the overall outlook is positive. As such we can expect the contract to breach ₹282 eventually and rise to ₹300 in the coming weeks.
However, whether this rise can happen immediately or after one more leg of fall to ₹260 is not very clear. So we will have to wait and watch the price action in the coming days to get clarity.
Trading Strategy
Traders can wait for a dip and go long at ₹270. Accumulate longs at ₹264. Keep the stop-loss at ₹257. Trail the stop-loss up to ₹274 as soon as the Zinc futures contract moves up to ₹284. Move the stop-loss further up to ₹282 as soon as the contract touches ₹288 on the upside. Exit the long positions at ₹295.
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.