The worth of zinc futures on the MCX (Multi Commodity Exchange) has been falling since mid-April from about ₹383. While there was a corrective rally from ₹305 to ₹340 within the second half of May, the contract resumed its downtrend. We had advisable initiating shorts at round ₹330 with preliminary stop-loss at ₹345.
In line with our expectations, the costs have fallen l and is at present hovering round ₹312. Based on the revisions, the present stop-loss shall be at ₹338.
The bears appear to be losing traction with the value degree of ₹310 providing good assist. The RSI and the MACD on the each day chart are exhibiting indicators of a restoration, though not signalling bullish reversal.
One can liquidate half of the shorts at ₹312 and tighten the stop-loss to ₹326 i.e., slightly above the hurdle at ₹325.
When the contract falls under ₹310, it may rapidly drop to the assist band of ₹286-292. Exit the remaining shorts at ₹292. There may very well be a bounce off from this worth area.
On the opposite hand, if the contract breaks out of ₹325, it may rally to ₹340 – the closest resistance. The subsequent resistance is at ₹350.
Published on
June 21, 2022
