Technical View on Zinc
We have seen mind blowing rally in Zinc in last last year. It spurts from 96.65 to 204.20 almost up by 111%. Zinc future is trading around 190. It made a high of 204.20 on Nov 28, 2016 and crashed sharply. Zinc formed Rising wedge pattern on daily chart and having breakout point at 189.50. Below 189.50 Panic remain continue.
Zinc... Support at 189.50 and resistance at 191.50.
Break and sustain + close below 189.50 with volume will see sharp downside panic in it. 182---178 and then to 168 mark in days to come.
On Daily chart, Zinc is trading above 21 and 55 days exponential moving average which is at 189 & 184 while MACD and RSI too showing negative diversion which indicate that upper side seems limited. Traders don’t go for aggressive or positional buying at all because trend is neagtive and we will expect panic to remain continue till 183+ mark in coming week. For positional trade, stop loss seeing at 191.50. It will get positional strong only above 191.50 mark which is unlikely to breach in near terms.
