MTECHTIPS MCX ZINC WEEKLY trading analysis 28-05-2015
Mcx zinc future closed at 140.1 with gain. on daily chart, zinc future given closing below major short term averages. last session was 4th losing session for this base metal. on upside 139.5 is 3 month average and 1.44.5 is 1 month average. both these levels will remain as strong resistances. on indicators, mcx zinc future macd is with strong bearish divergences. RSI is at 33 and looks oversold while CCI is –157 and trending down in oversold zone.on weekly chart, zinc future shows deep cut in this week. this was second weekly losing for this metal. in these 2 weeks period mcx zinc future lost 15 rupees plus from its price. this week zinc future high was at at 147 while low was at 137. total 10 rupee range and closed with loss. on weekly chart zinc future closed at major average support. weekly chart indicators patterns are also bearish and suggesting downside for this metal in upcoming weeks.for next week, 135.5 is first target for this downside rally. if gives daily closing below 135 on price and volume then expect downside up to 121 in very short time. 143.5 is trailing stop loss for swing traders and below it one can keep sell on rise strategy for mcx zinc.