zinc mcx daily chart
Here I attached daily mcx zinc chart. I used bollinger band and fib retracement tool to judge the trend
and resistance.
You can see that last candle is closed above middle line (red), which is bullish sign and the price can go upward within the bollinger band.
Next resistance is placed at 190, which is 61% fib retracement of prior fall from 198 to 176. If the
price cross and sustained above it then it can go towards 194 mark which is again 78% fib retracement.
But I look it is very dificult to happen because after 204, there is 198 mark as a prior lower high,
which will work as solid resistance. Upper line which is resistance line of bollinger band is also placed at 194.
and resistance.
You can see that last candle is closed above middle line (red), which is bullish sign and the price can go upward within the bollinger band.
Next resistance is placed at 190, which is 61% fib retracement of prior fall from 198 to 176. If the
price cross and sustained above it then it can go towards 194 mark which is again 78% fib retracement.
But I look it is very dificult to happen because after 204, there is 198 mark as a prior lower high,
which will work as solid resistance. Upper line which is resistance line of bollinger band is also placed at 194.
conclusion -- Those who stuck in short position should cover their short position if the price moves upward in monday trading session. Wait for some time, let the price go upward and place sell order again in sl format order ctc. If zinc price return back, you will automatically enter again in short position.
Thank you, Jay Shriram
Update 1,22nd Mar, 05.21 pm
This is the result. Zinc made a coil, i.e. symmetrical triangle & moved down to kiss 183 mark. After that it took some retracement and return upward towards base line of triangle.
188.60 is the highest price within this triangle, which is also 78% retracement of the prior fall from 193 to 176.
So, one can easily see lower low's -- lower high's formation in making on this zinc hourly chart. Thank you Jay Shriram.
Zinc fundamental's
Zinc on MCX settled down -1.21% at 183.90 as pressure seen after the China's economic growth is likely to slow to 6.5 percent this year and cool further to 6.3 percent in 2018, the OECD said, though exports are set to pick up as global demand strengthens.
Also prices seen pressure after the update that Peru's Zinc production output increased by 11.3 percent in January from the same month a year earlier official data showed on Tuesday.
Also China's economic growth is likely to slow to 6.5 percent this year and cool further to 6.3 percent in 2018, the OECD said, though exports are set to pick up as global demand strengthens.
While on support side Peruvian zinc and silver miner Volcan said it had declared force majeure on its mineral deliveries after heavy flooding disrupted transportation from the country's central region to the Pacific coast.
Heavy rains in Peru have disrupted train transport of minerals, and the train line could take at least 15 days to fix. The region is home to Chinalco's 300,000 tonne-per-year Toromocho coppermine, and a zinc and silver mine owned by Volcan.
Final update, 27th March 2017, 07.42 pm
Look at the attached chart, zinc CMP is 178. Profit of more than 6 points, that means 30000 rupees in single lot.
