Zinc: Bearish structure
MCX Zinc formed a five wave decline from Rs108.95 till Rs102.6. Post the impulse formation, zinc has done a pullback. It retraced nearly 78.6% of the five wave fall and reached the daily upper Bollinger Band. From there it has started its next leg down. In terms of price patterns, zinc has formed a head and shoulders (H&S) pattern, which is a bearish pattern. The price is currently at the neckline. The daily momentum indicator has triggered a bearish crossover. Hence the base metal is expected to head towards the pattern targets viz Rs101 – 97.6. Reversal can be kept above Rs106.10.