Zinc: Bears turning the table
MCX Zinc has been in an up trend. However it has now reached a crucial hurdle ie the long term falling trendline. Surpassing the trendline in this attempt seems to be a Herculean task for the bulls as they are lacking the necessary support from momentum. The daily momentum indicator is showing a negative divergence and has triggered a bearish crossover. Thus unless Rs110 is crossed on a closing basis Zinc can undergo a correction. The correction is expected to bring the metal down to the medium term rising trendline (Rs104). A breach of that would mean a downtrend from the medium term perspective and the target for the same would be the long term rising trendline, ie near Rs93.
