Mcx zinc future today is trading at 193.5 with flat gains. This week we saw sharp profit booking in base metals and zinc prices also came down significantly from the highs. This week zinc hit high around 198.7 while trading at week low was near 190 rupee on last day of week. In last 2 weeks zinc future tumbled from high of 205.7 to low of almost 190 rupee. Weekly chart now suggesting correction for zinc future.
Mcx zinc daily chart shows prices are now below 5 and 20 days average level of 195.5 rupee and heading lower towards 189.8 rupee which is 50 days average support level. Daily chart RSI is at 47 with fresh sell signal and MACD is with bearish divergence and with sell signal given at 205 rupee level.
For September zinc future opened strong and my targets were 210 and then 220 and we saw zinc future recorded high near 206 but profit booking and news flow from US and CHINA made pressure on prices and we was strong profit booking and support testing of 193 rupee. Daily closing below 193 means downtrend and big downside for zinc prices. Below 193 expect lower levels up to 182 to 169 rupee in this month.
But if sustain above 193 rupee and then that will be best buying opportunity with stop loss for upside buy targets of 210 and 220 rupee.