Mcx zinc future this week closed at 195.65 with loss. This was first weekly loss for zinc prices after previous 2 weeks strong short covering rally. This week zinc future hit high at 203.4 while low was at near 195. Total 8 rupee range and closed with loss on sharp profit booking and hit my corrective target of 195 rupee.
On weekly chart, zinc future is in bullish trend but momentum is fading out on profit booking ad prices are retracing towards averages. Mcx zinc weekly chart, 5 weeks average at 190 rupee below that 180 is 20 weeks average and next support and 172 rupee is 50 weeks average and last support. RSI is 64 with buy signal given at 162 rupee levels. while MACD is with strong bullish pattern and suggesting fresh medium term bull run for zinc prices and it had given buy signal around 174 rupee levels.
Mcx zinc future for month of august opened weak and almost hit low side target of 174.5 with low of 175.65. Then strong recovery rally hit upside resistance of 179.8 and then with bullish breakout above it mcx zinc future hit august bullish targets of 185 and 190.5 and another super bullish rally hit 195 and 201. And now correction hit support of 195 and below that next supports as well as corrective targets will be 190.5 and then 185.
For next week, mcx zinc future below 195 rupee zinc prices will remain bearish and sell for corrective move. Zinc daily chart price trend and momentum both are super bullish and now prices trading below 5 days average of 197.6 and heading lower towards 191 and 183.6 rupee average levels of 20 and 50 days averages. Daily chart RSI is at 61 with fresh sell signal while MACD is above zero with topped out corrective pattern.
From long term view, mcx zinc future was correcting towards major support of 157 rupee and look like taken support just above it and moving upside towards investment target of 219 rupees. Now we saw high of 203+ in this week.
In last 7 months, zinc prices closed in red for 5 months while 2 months are positive with long term bottom at 157 rupee. And on upside my long term targets are at 219 and then 265 rupees. In month of august lead prices rallied from low of 175 to high above 203 and showing 28 rupee big bull candle on chart.