Short Zinc near Rs 114; short term tgt Rs 106.90: Sharekhan

Sharekhan has come out with its report on Zinc. According to the research firm, the fresh short position can be initiated near Rs 114 with reversal above the 20-daily moving average, ie Rs 116 on a closing basis.

As can be seen from the chart, MCX zinc has formed a large wedge pattern, which is a bearish pattern in this particular case. The pattern looks complete at the high of Rs 119.10 from where the commodity has started falling down. The daily momentum indicator is in line with the price fall. Zinc has reached the lower end of the pattern. A minor-degree bounce from the current level should be used as a selling opportunity. The fresh short position can be initiated near Rs 114 with reversal above the 20-daily moving average, ie Rs 116 on a closing basis. The short-term target on the downside is at Rs 106.90.                                                   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. To read the full report click on the attachment

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