Comments
The strong uptrend in the MCX Zinc futures contract that has been in place since early June has come to a pause in the last week. Technically, the 61.8 per cent Fibonacci retracement resistance at ₹182 has halted this rally and the contract has come off after making a high of ₹182.85 a kg on July 3. The contract made a low of ₹177.25 and has bounced back slightly from there. It is currently trading at ₹179.35 .
The contract will gain fresh momentum only if it surpasses the ₹182 mark decisively. As long as it trades below ₹182, a fall to test the key near-term support at ₹175 cannot be ruled out. If it manages to rebound from this support, a range-bound move between ₹175 and ₹182 is possible for some time. But a fall below ₹175 may increase the downside pressure and drag it to ₹171.
However, the possibility of the contract falling below ₹175 looks less as the price action in the past week signals lack of strong sellers in the market. As such dips to ₹175 may bring in fresh buyers in the contract.
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.