Comments
The Zinc futures contract on the Multi Commodity Exchange (MCX) has tumbled 5 per cent over the last one week. It is currently trading at ₹160.45 a kg. Though there is some support near current levels at ₹160, the contract is likely to break this level and decline to ₹157. A significant trend-line support is poised at around ₹157 which can halt the current fall. The downside pressure will ease if the contract manages to reverse higher from ₹157. In such a scenario, a bounce back move to ₹160 is possible. Further break above ₹160 will see the up move extending to ₹165 or even ₹170 levels thereafter. Short-term traders with high-risk appetite can go long on an upward reversal from ₹157. Stop-loss can be placed at ₹155 for the target of ₹161. Revise the stop-loss higher to ₹158.5 as soon as the contract moves up to ₹160.
On the other hand, if the MCX-Zinc futures contract breaks below the trend-line support at ₹157, it will come under more pressure. Such a break can drag the contract lower to ₹150 – the 50 per cent Fibonacci retracement support or even₹148 – the 21-month moving average level in the short term.
Note: The recommendations are based on technical analysis and there is a risk of loss in trading
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.