21 Nov 2017
In line with our expectation the Zinc LME future prices bounced back from 1.31 levels and consolidated for this week between 1.3100-1.3200( made a high of 1.3187 this week) something which we shared in earlier mail. A break out of this set region is likely to happen within next few days as seen on the chart, the prices has squeezed between the level said and now a break out of 1.3185 is required to set the tone for 1.3320 level again which I think is the higher probability. On the other side break of 1.31 and close below 1.3130 will confirm the updside momentum has receded and a fall to 1.2975 will be imminent.
Momentum indicators like RSI and MACD confirm the upside break to 1.3320 levels. A buy position can be initiated between 1.3135-1.3155 region for a target of 1.3320 with a strict stop loss at 1.3085.