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Zinc futures (December contract) on the Multi Commodity Exchange (MCX) have declined since mid-November. It began to fall after going through resistance at ₹235.
Last week, the contract broke under the assist at ₹220. Early this week, zinc futures marked a low of ₹214.95 however recovered to shut at ₹217.15 on Monday.
The bounce in worth is more likely to be a corrective one. The near-term pattern will solely change provided that the bulls elevate zinc futures above ₹225, the place the 20- and 50-day transferring averages coincide.
Given the prevailing worth motion, we anticipate the contract to maneuver as much as ₹220 and resume the autumn. In such a case, zinc futures might decline to ₹212, a assist.
Trade technique
Short zinc futures at ₹220. Target and stop-loss will be at ₹212 and ₹223, respectively. As a threat administration measure, tighten the stop-loss to ₹218 when the worth slips under ₹215.
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