Zinc may tumble down from current level: Sharekhan

Sharekhan's report on ZINC

Zinc forms a bearish set-up: MCX Zinc had fallen sharply in September this year. From a high of Rs 136.90 it reached the medium-term rising trendline. The base metal found support near the trend line but couldn’t convert it into a significant bounce. For the last few weeks the price has been consolidating near the trend line and formed a bearish flag pattern. The daily upper Bollinger Band and the swing’s high are acting as key resistances. Thus, the commodity is expected to tumble down from the current level. The risk-reward ratio is excellent for a fresh short position. Unless the level of Rs 121.30 is crossed on a closing basis the commodity can test the recent low of Rs 113.5.     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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