Zinc may fall to Rs 94: Sharekhan

Sharekhan has come out with its report on Zinc. According to the research firm, the price of the metal is expected to fall towards the lower channel line of Rs 94 and the intermediate support is at Rs 96.30.

Zinc buckles under pressure

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. Recently, it formed an ending diagonal and broke out on the upside. However, the bounce couldn’t extend beyond the junction of the 40-daily exponential moving average and the daily upper Bollinger Band. From there, zinc started a fresh move down. The daily momentum indicator has given a fresh sell signal. Unless the 20-daily moving average (Rs 100.80) is crossed on a closing basis, the price is expected to fall towards the lower channel line, ie Rs 94. The intermediate support is at Rs 96.30.

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.

Read More