Zinc about to topple
MCX Zinc formed a large ending diagonal and tumbled down sharply from there. It has done a pullback, which has retraced 78.6% of the previous fall and from that key Fibonacci level it has started falling once again. On the way down, it has broken a short-term rising trendline. Lead has formed a bearish flag pattern below the trendline, which shows that the next round of selling is around the corner. The daily momentum indicator that has been showing a negative divergence has triggered a bearish crossover. Thus, the base metal is poised for a fall till 105.70-103.70 from a short-term perspective. A reversal can be placed at 111.30 on a closing basis.