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Zinc prices continue to oscillate in a wide range. The Zinc Futures contract on the Multi Commodity Exchange (MCX) has been range bound between ₹274 and ₹292 for more than three weeks now. Within range it is now poised near the upper end of this range. The contract is currently trading at ₹290 per kg.
Outlook
Although the price has been oscillating in a range, the price action on the chart leaves the bias positive. The weekly candle chart indicates that the Zinc Futures contract is getting strong buyers below ₹280.
Resistance is around ₹294. The chances are looking high for the contract to breach this hurdle in the coming days. Such a break will boost the bullish momentum. It can then take the MCX Zinc Futures contract up to ₹310-₹320 in the coming weeks.
In case the contract fails to breach ₹294 and turns down, it can fall back to ₹280-₹275 again. In that case, the sideways range will continue to remain intact.
Trade Strategy
Traders can go long on a break above ₹294. Keep the stop-loss at ₹282. Trail the stop-loss up to ₹298 as soon as the contract moves up to ₹303. Move the stop-loss further up to ₹308 when the price touches ₹314. Exit the long positions at ₹318.
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