MCX Zinc June futures seems to have formed a temporary bottom at 98.30 levels for the near-term perspective. It has been consolidating in the range of 98-40 to 105 for the last couple of weeks, slowly preparing ground for a bull run in coming sessions. A “double bottom” pattern is in progress on the daily charts, and it could get confirmation on a sustainable close above 105 levels.
According to the chart pattern, 111.70 levels will be the immediate target on upper side. It can possibly stretch towards 114 levels, which coincide with 72.8% Fibonacci levels of the previous fall, which starts from 119.95 to 99.30 levels. However, on downside one should exit below the trend-line support of 101 levels.
The RSI and MACD are both in positive territory, supporting the view. Prices have taken support from the short-term Moving Averages.
Strategy: Zinc June MCX: Buy 1 lot above 105 levels target 111.70 then 114 with stop loss 101. Cmp 104.7
-Risk/return ratio: 1: >2
-Risk: 4000 (on 1 lot)
-Return: 9000 (Average on 1lots)
According to the chart pattern, 111.70 levels will be the immediate target on upper side. It can possibly stretch towards 114 levels, which coincide with 72.8% Fibonacci levels of the previous fall, which starts from 119.95 to 99.30 levels. However, on downside one should exit below the trend-line support of 101 levels.
The RSI and MACD are both in positive territory, supporting the view. Prices have taken support from the short-term Moving Averages.
Strategy: Zinc June MCX: Buy 1 lot above 105 levels target 111.70 then 114 with stop loss 101. Cmp 104.7
-Risk/return ratio: 1: >2
-Risk: 4000 (on 1 lot)
-Return: 9000 (Average on 1lots)