Technical Outlook & Trading Strategy:-
The price of Zinc has witnessed a smart rally from the lows of Rs 96.70 levels as on 20th June, 2011 levels to register a high of Rs 109.80 levels as on 19th Jul, 2011.
But the momentum indicators of Zinc are now in extremely overbought zone and adding to that the price of zinc has formed a bearish reversal bar on its daily charts.
We believe that the price of zinc is now set for a corrective move and one could see supply coming in on rallies to Rs 109—Rs 109.50 levels.
We recommend traders to sell between Rs 108—Rs 108.75 levels with a stop loss placed above Rs 109.80 levels for downside targets of Rs 107 and/or Rs 106.25 levels
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