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Tuesday, July 26, 2011

MCX ZINC July CMP—Rs 108.35

Technical Outlook & Trading Strategy:-

The price action of Zinc on the intraday charts is taking shape of a bearish head & shoulder pattern.

We believe that this is an extremely bearish development in this base metal and one could see the prices of Zinc trading with a negative bias over the upcoming sessions. The momentum indicators are also showing signs of weakness.

We recommend traders to sell between Rs 108.60—Rs 108 levels with a stop loss placed above Rs 109.25 levels for downside targets of Rs 107.40 and followed by Rs 106.75 levels.

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