Zinc futures: Go long with stop loss at ₹260 by admin- Tuesday, December 21st, 2021 08:01:43 AM
In the near time period, the upside capability is at ₹three hundred.
The continuous settlement of zinc futures on the Multi Commodity Exchange (MCX) witnessed its remaining leg of downtrend between mid-October and mid-November. During this one month, the futures charge declined from the excessive of ₹326.8 to ₹260. But then, the settlement started to chart a sideways trend wherein it become mainly transferring in the variety of ₹267 and ₹280.
The contract broke out of the resistance at ₹280 and both 21- and 50-day moving common remaining week, hinting at a high quality bias. The day by day chart’s relative electricity index (RSI) and the moving common convergence divergence (MACD) are now inside the superb territory. Thus, going ahead, the probability of a rally from the present day levels look excessive. Yet, the contract may soften to ₹270 before extending the rally.
It is really worth noting that the overall market has been beneath pressure of late, and thus, the charge motion needs to be carefully watched, and the latest advantageous bias needs to be fascinated with a pinch of salt. Therefore, traders are advised to execute simplest brief-time period trades given the modern circumstances.
Considering the above factors, investors can move lengthy on MCX zinc futures at the contemporary degree and gather if the rate moderates to ₹270. Place prevent-loss at ₹260. On the upside, the contract may want to touch ₹290 and possibly ₹300 inside the close to time period. So, go out 50 in line with cent of the longs at ₹290. Then, revise the forestall-loss to ₹278 and liquidate the closing at ₹three hundred.