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The Zinc futures contract on the Multi Commodity Exchange (MCX) retains its ₹175-₹185 a kg sideways range for the fifth consecutive week.
After hovering below ₹180 over the last few days, the contract surged above this resistance on Tuesday. It is currently trading at ₹183.25 and is on the verge of testing the upper end of the range, which is ₹185.
Whether the contract manages to break above ₹185 in the coming sessions or not will decide the next move.
A strong break and a decisive close above ₹185 will confirm the range breakout. Such a break will also keep the overall uptrend that has been in place since June intact and signal the resumption of this uptrend.
An immediate rise to ₹190 is possible in such a scenario. A further break above ₹190 will see the uptrend extending to ₹195 or even higher levels.
On the other hand, if the MCX-Zinc futures contract fails to break above the resistance at ₹185 in the coming days and reverses lower, then the sideways range will continue for some time.
Such a pull-back from ₹185 will increase the possibility of the contract falling to ₹180 and ₹175 levels once again.
Note: The recommendations are based on technical analysis and there is a risk of loss in trading
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