Buy Zinc; target Rs 108, SL Rs 100.90: Sharekhan

Sharekhan has come out with its report on Zinc. According to the research firm, one can buy Zinc for a target of Rs 108 with a stop loss of Rs 100.90.

Zinc set for a leap As can be seen from the chart, MCX Zinc formed a large wedge pattern, which got over at the high of Rs 119.10. From there, the commodity has fallen sharply. It has retraced 78.6% of the previous rise. Recently, it has formed an expanding ending, which suggests that the fall is near its maturity at least from a short-term perspective. The daily momentum indicator is showing a positive divergence and has given a buy signal. All these signs suggest that one can take a contra trade for a target of Rs 108. The reversal for the bullish view can be placed below the recent low, ie Rs 100.90.                                 Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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