Zinc weekly outlook 7 to 11 April 2014
Zinc daily chart technical analysis
MCX ZINC on last trading session closed at 120.6 with gain. On daily chart, zinc future trend is down but momentum is on recovery side. Prices are trading below major average but with rounding bottom.
For next week, zinc future support zones are 118 and 115 which are previous swing lows while on upside 121 is first resistance of 1 month average and then 123.5 is 3 month average and strong resistance from short term view.
On indicators and oscillators, RSI is 45 but with bullish divergence and CCI is -83 but off the lows and with rounding bottom.
Traders expect bounce back to extend up to 123.5 and if gives daily closing above it then that will be trend change and another buy signal. For long position, stop loss must be below 118.
Zinc weekly chart technical analysis
MCX ZINC this week closed with 2.12% gains. Zinc has taken support of its 12-month average and given strong positive closing, which is bullish sign for investors. This week zinc future hit high at 121.35 while low was at 117.55. Total 4-rupee range or 3% weekly swing and closed with gain.
From medium to long-term view, 123 is 6 month average and first major resistance on upside above it 127 will be next resistance which was previous swing high. On downside 118 is 12-month average, 114 is 2 years average level, and both will remain as strong weekly closing basis support zones.
On indicators and oscillators, RSI is 51 and with fresh buy signal. CCI is 75 and forming bullish divergence.
Investors keep stop loss below 118 and hold long view for 123-127 in upcoming weeks.