Zinc technical analysis 19 to 23 May 2014
Zinc daily chart technical analysis
Mcx zinc future on last trading session closed at 121.2 with loss. On daily chart, zinc is closed below major short-term averages with bearish indicator patterns. For next week, zinc future resistance zones are 123 and 125.5 while on downside expect strong support areas at 119 and 117. Daily chart indicators are bearish and in bearish zones suggesting downside for prices in next week.
Traders below 125.5 keep short view for next week. Follow sell on rise view for target 119 and then 117. 123-124 is best fresh selling zone with proper risk reward ratio.
Zinc weekly chart technical analysis
Mcx zinc future this week closed with 0.66% loss. This was third losing week for zinc future. This week zinc future hit high at 125.15 while low was at 120.45. Total 5-rupee range or 4% weekly swing and closed with loss. On weekly chart, zinc future is closed below its 6 month average and heading towards 12 month and 24 month averages. From medium to long-term view, resistances are now 123 and 126 rupees. On downside, 119 and 114 are support zones of 12 and 24-month averages. Weekly chart indicators are bearish and near support zones.
Here expect correction to continue and zinc may test 12 and 24-month averages in upcoming weeks.