The prices of Zinc had been trading in a broad range of Rs 114.50 to Rs 97 levels since 22nd Aug,
2010 levels.
The Rs 97 levels were acting as strong support for the prices of Zinc on every correction from higher levels.
But, as outlined in the chart above the prices of Zinc have now registered a breakdown below
this key and very important support level on a closing basis during the previous week.
Any pullback from current levels is likely to face supply pressure. Some of the other key technical
factors those are moving in sync with the bearish price action are the sell signal given by the RSI
indicator and the prices have also closed below their key moving average clusters.
We recommend traders to sell 50% between Rs 96.00—Rs 95.00 levels and 50% on rallies to Rs 97.25--Rs 97.75 levels with a stop loss placed above Rs 98.30 levels for downside targets of Rs 93.25 / Rs 91.50 levels.
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