Zinc LME- Looks to break out of 1.3100-1.3185 region in next few days
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.
