The price of Zinc made a bearish double top pattern at the key resistance placed around the 200
DMA during the past week.
The selling pressure witnessed during the previous session of trade has now led to a breakdown below the important support levels placed at the Rs 99.70 levels.
Sustenance below this key support will see the price of zinc fall towards the implied targets of
Rs 97 and/or Rs 94.90 levels in the near term time frame.
Some of the other technical factors that add strength to the bearish price action above are that the fall witnessed over the past few sessions have been on the back of strong surge in volume and the MACD indicator has given a fresh sell signal.
We recommend traders to sell between Rs 100--Rs 99 levels with a stop loss placed above Rs 101.15 levels for immediate downside targets of Rs 97.75 / Rs 96.50 levels expected to be achieved in 2-3 sessions.
MCX ZINC SEP. CONTRACT OPEN Rs 100.70 HIGH Rs 101.25 LOW Rs 99.30 CLOSE Rs
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