MCX Zinc can bounce to Rs 108-109: Sharekhan

Sharekhan has come out with its report on Zinc. According to the research firm, the metal is expected to bounce till Rs 108-109.

Zinc ready to sparkle

As can be seen from the chart, MCX Zinc formed a large wedge pattern, which got over at the high of 119.10. From there, the commodity has fallen sharply. It is falling in a channelised manner and has fallen below the 61.8% retracement of the previous rise. As a result of the sharp move, the daily momentum indicator has been beaten down into the oversold territory and it needs to cool off. A higher time frame, ie the weekly chart, shows that the base metal has fallen from the weekly upper Bollinger Band towards the lower Band. Thus, one can take a contra trade at this level with reversal below 101 on a closing basis. Zinc can bounce till 108-109.

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.

To read the full report click on the attachment

Read More