Zinc futures have been on a decline since mid-December after finding resistance at ₹293. While the price has been flat for the last few sessions, the bearish bias exists.

Notably, the February futures are facing a trendline resistance and the price is below both 20- and 50-day moving averages. All the resistance points lie between ₹268 and ₹270.

So, from the current level, the likelihood of a fall is high. The nearest support can be spotted at ₹260. A breach of this can drag zinc futures to ₹255.

On the other hand, if the contract rises and surpasses the barrier at ₹270, the short-term trend can turn bullish. In such a case, zinc futures can rally to ₹278 and then possibly to ₹283.

Broadly, at the current juncture, the inclination is bearish.

Trade strategy

Short zinc futures at ₹268 and place a stop-loss at ₹272. Book profits at ₹260.

If the above stop-loss triggers, it would act as an indication of a trend reversal. In that case, buy zinc futures for a target of ₹283. Stop-loss can be ₹268.

Published on February 17, 2025