Zinc futures, which has actually been relocating a narrow variety on the Multi Product Exchange (MCX) considering that the start of July, has actually seen a breakout.
After oscillating in between 212 and 216 for almost 2 weeks, the agreement has actually exceeded the 216-levels, unlocking for additional rally. The agreement is presently hovering around 218.
In spite of the resistance at 223, there is a likelihood for zinc futures to rally to 230 over the near-term.
A breach of 230 can turn the medium-term pattern favorable and the agreement may even increase to 250.
On the other hand, if the agreement decreases from the present level, it has a vibrant increasing trendline assistance. Horizontal assistances are at 210 and 206.
Trade technique
Given that the agreement has actually seen a fresh breakout, the possibility of a rally is high.
Versus this background, one can purchase zinc futures at the present level of 218. Include more longs if the rate dips to 215, with the stop-loss at 208.
Shift the stop-loss to 218 when the agreement touches 225. Reserve revenues at 230.
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