zinc, is it moving towards 170 ?

Zinc, in process of making descending triangle

Zinc mcx daily chart

     First of all, keep in mind that,' this is daily chart and take its time accordingly.' Many of us are habitual of 15 min, hourly chart to get instant results but here is daily chart posted.

     As seen in the chart, after making high around 204, zinc price turned downward, made low of 166 and turned upward and made new lower high of 196 around. After the high of 204, zinc price is made lower and lower highs, as seen in the attached chart.

     If we cover all candles from 204 high in triangle, there will be symmetrical triangle chart formation is in making. But we cant hold the position for such a long duration to get expected results. so we took price movement from second lower high of 198 marked at 13th Feb 2017 till yesterday.

     After drawn a triangle, there is descending triangle appeared on chart. To confirm it we used ABCD pattern and acknowledge that price touched 2 times to upperline and 2 times to the lower ( support line ) line. This is essential for to be a descending triangle.

     On the upside, resistance from channel resistance line ( descending line ) and prior high is placed at 186.50 around. this should be sl.

     Support line of this triangle is placed at 175.75, if zinc price break this, then it can touch 170 mark and after that 166 mark. Thats all, what can I read from this daily zinc chart. 

     Hope that, this post will help you in taking your descisions. If you like this article, please share it on facebook and other social media. Thank you for giving your precious time to read my blog, Jay Shriram.

update 1, 7th April, 12.30 am

mcx zinc daily chart

     As you can see in the chart, 6th april closing price is 175.95 and price made low of 175.05, closed on very negative note. Rule for descending triangle is that,' breakout should happen after 2/3 rd triangle space is captured by candles, but that rule was not followed by zinc price in this case. On 3rd april zinc price tried to breakout downwards breaching 175.80 price mark downwards but failed. A falls spike occures taking the price up to 181.75. after two trading days, today it comes back on right track. 

     Now we are using trailing stop loss method to lock profits. Next tgt is 170 followed by 166. Lets hope for good. Jay Shriram.

update 2, 7th apr, 12.37 pm

mcx zinc daily

     Beautiful breakout, patience paid us huge profits. We shorted it at 181 and holding the position patiently since last 1 month or more. Many up and downs were there. Price went up to 188, but we didnt shut down position. We were confident about our chart pattern. And here is the result. I feel this chart pattern is more beautiful than Taj Mahal.

Update 3, 12th April 2017, 11.45 am

mcx zinc daily chart

     Look at the daily mcx zinc chart, price broke S2 166 just before few minutes. Below 166 there will be panic situation for zinc, can face lower circuit. If somebody is caught in long position should place sl at 164 and wait for any pull back to exit long.

    We booked all profits for our short  position created around 181. Now this zinc post is closed.

Copper in free fall mode

                                      10/7/2016, Sunday.

                        

Channel Pattern 

As indicated in attached daily copper chart, we can easily see that, copper price is moving in a donward moving channel since last 90 days. On 3 occasions ( a,c,e ) it touched resistance line. Price respected resistance line in this upward journey and came back to visit support line ( b & d ). In the third upmove it touched the resistance line and fall vertically. This point is shown in red rectangle.

There is another channel within the main channel, which is indicated by red lines. After returning from resistance line ( rectangle ), price breach support line of this blue colored channel ( circle ) around Rs 325 - 326 mark and as a result it got new steam for its down ward journey. 

                              Failure Of  Expanding triangle

Usually price fell after end of expanding triangle but here we can see the failure of this chart pattern. We can see this triangle colored in blue lines. Instead of going down price sparked upward and touched point e of resistance line.

                                        Moving Averages 

For the purpose of study of dma, 3 types of dma,s used here. (1) 5dma is shown in yellow line (2) 10 dma is shown in blue color line (3) 20 dma is shown in green color line. 5 dma line crossed 10 dma line in downward direction. As there are only 5 days or 5 candles in its downward journey, 10 dma line is yet to show new direction.

                                              Conclusion

Looking at channel structure and break of inner channel support line, we can hope that price will continue its journey towards main support line of big channel towards supportline placed around Rs 300 or 2.22 dolor mark. If we think only about main channel irrespective of inner blue colored channel, price is heading toward support line after visiting resistance line. Support line is placed around Rs 296 to 297. But there is support around Rs 300 or dolor 2.22 which is last time low, shown as point d. So keeping all this factors in mind I suggest to go short in copper @ cmp Rs 318 or 2.12 dolor for the targeted price of Rs 301 mcx or dolor 2.02 with the sl of Rs 321.60 mcx or dolor 2.15 around. Stop loss is placed @ the high price of last day candle. Hoping good profits from this trade, wish you best luck. Request you to use trailing sl method for safer profits. Thank you.