The key observation to be made on the chart above is that, the prices of Zinc have registered a
bullish inverted Head & shoulder pattern breakout.
The neckline support for the said pattern is placed at the Rs 97.15 levels. Thus, one could see the price of zinc trading with a positive bias over the upcoming few session of trade.
Sustenance above the neckline support level mentioned above will see the price of zinc head towards the Rs 100.25 / Rs 102 levels on the upside.
The RSI indicator has also given a fresh buy signal and this lends support to the bullish price set up, and the price has also closed above the key moving average clusters.
We recommend traders to buy between Rs 98.75--Rs 98.20 levels with a stop loss placed below Rs 97.10 levels for upside targets of Rs 100.25 / Rs 102 levels, expected to be achieved over the upcoming 2-3 sessions of trade.
MCX ZINC AUG. CONTRACT OPEN Rs 96.30 HIGH Rs 99.15 LOW Rs 96.30 CLOSE Rs 98.55
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