MCX Zinc March: CMP Rs 123.90/Kg
Strategy: Sell @ CMP | Stop @ 125 | Target @ 120.70 — 118.65 — 116.90
Strategy: Sell @ CMP | Stop @ 125 | Target @ 120.70 — 118.65 — 116.90
The MCX Zinc March contract is showing signs of Double Top Formation at 124.50, which indicates that prices may correct if the contract fails to cross this resistance level.
Zinc rose from 112.70 (Base Point) in mid-February to test the higher level of 124.50 (Point A) in early March. However, prices failed to sustain at higher levels due to profit booking and zinc fell to 116.9, which is the mid-point of Double Top Formation.
Zinc witnessed buying interest at lower levels and prices have firmed up in the past few trading sessions to touch 124.50 at (point C). The contract faces immediate resistance at 125 and if it fails to cross this level on closing basis then prices may correct to 120.70.
A further decline below this level could see zinc falling to 118.65-116.90 levels. If the contract breaks the mid-point support of 116.90 then prices could fall to the previous bottom of 112.70.
However, if zinc rises from the current level and crosses 125 on closing basis then prices may gain further to test 130 levels.
