Technical Outlook & Trading Strategy:-
The price action of Zinc over the past few sessions of trade was taking shape of a Rising Wedge pattern on its daily charts. The selling pressure witnessed during the previous session has taken the prices of Zinc below the lower end of the pattern on a closing basis, resulting into a breakdown.
We would like to point out that the rising wedge is a bearish reversal pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows. The momentum indicators have also turned into sell mode.
We recommend traders to sell 50% at current levels and again on rallies to Rs 107.25—Rs 107.75 levels with a stop loss placed above Rs 108.30 levels for downside targets of Rs 104.25 and followed by Rs 103 levels expected to be achieved over the upcoming 3-4 sessions of trade.
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