Zinc MCX -Moving in a channel, support at 217
20 Jan 2018
In continuation of our last zinc outlook , prices broke past 208 crucial resistance and immediately met our target of 215 levels as seen on the chart. Break of 208 was crucial to confirm that downward or consolidation period is over and zinc prices will push upward towards 215 to 220 levels to resume upward trend.
What’s now on chart?
As seen on the chart the price has been moving in an upward sloping chancel since early December and now the channel support lies at 217 and upward chance resistance at 224.The momentum indicators are showing a negative divergence hence we will be careful to watch if 217 on the downside breaks or not and on the upside will eye 224 till the time 217 holds. Hence buy at 218 will stop loss at 216.85 and tp at 222 and sell if 217 breaks for a target of 215.80/212.
