17 Feb 2016 Technical Chart Zinc Correction mode

The adjacent chart shows the price movement of MCX zinc continuous contract. In the recent rally, ie from Rs.96.65 to Rs.120, zinc formed an impulse on the upside. To complete the impulse the base metal formed a bearish outside bar on the daily chart. From there the commodity entered a short-term correction mode. As per Elliott wave theory, it is expected to see a three-wave correction and accordingly we are witnessing a fall. The daily momentum indicator has triggered a bearish crossover. The swing high of R.s118.20 will now act as a key resistance. On the other hand, zinc can come down till Rs111-108.80.