Comments
BL Research Bureau
Zinc prices were volatile during the first two months of this year and as a result, the continuous contract of zinc on the Multi Commodity Exchange (MCX) saw zig-zag price movement with no definite trend. Nevertheless, in April, the contract established a steady uptrend which has been pushing the price of the futures up with intermittent corrections. On this line, the contract, after hitting a high of ₹262.85, saw a decline in price. However, the support at ₹250 restricted the decline below this level.
The price level of ₹250 is important as the 21- day moving average (DMA) coincided at this level, making the support stronger. So, the bulls were quick to respond resulting in a considerable bounce. Last week, the contract rallied past the prior high of ₹262.85, opening the door for further strengthening. Today, the contract moved above the ₹270, which has been giving some tough time to the bulls for the past few trading sessions.
From here, the contract is likely to go up ₹285 initially. A clear breach of this level can make the job easier for the bulls to lift zinc futures to ₹300-mark. So, traders can go long at current level of ₹274 and accumulate more if it drops to ₹265. Place stop-loss at ₹255 and aim to partially exit at ₹285. Carry the remaining for the target of ₹300 with the stop-loss revised upwards to ₹275. If the contract rallies past ₹280 without declining to ₹265, place stop-loss at ₹265.
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.