Zinc futures: Go short with prevent-loss at ₹332 by admin- Friday, May 27th, 2022 07:43:49 AM
The settlement could decline further to ₹286-292 variety in multiple months
The downtrend that began in mid-April pulled down the zinc futures at the Multi Commodity Exchange (MCX) as the rate fell from ₹380 to a three-month low of ₹301 on May 13.
The contract rebounded due to the fact that then and early this week it was hovering round ₹325. Notably, that is a robust resistance degree, in which the 50-day moving average coincide. A rising trendline, which acted as a assist till April end, has now was a resistance as the rate slipped below this line in early May; this too currently lies at round ₹325. Hence, it would be difficult for the bulls to lift the agreement above this stage with the bearish sentiments.
We count on the agreement to align with the wider promote trend which has been in vicinity during the last one month. The contract is forecasted to depreciate to ₹300 in to 3 weeks. It can in addition decline to the aid band of ₹286-292 in more than one months.
Therefore, you’ll be able to go brief at the present day level of ₹323 with preliminary stop-loss at ₹332. When at ₹three hundred, liquidate half of the total shorts and tighten the stop-loss to ₹315. Book the closing shorts when the price falls to ₹292 as there can be a bounce off the help band of ₹286-292.