Zinc Bullish outlook 01 March 2016
The adjacent chart shows the price movement of MCX zinc continuous contract. In its recent rally, ie from Rs.96.65 to Rs.120, zinc formed an impulse on the upside. After the impulse formation, the commodity entered into a short-term correction mode. It formed a three wave correction and found support near the 20-day exponential moving average. As per the Elliott wave theory, zinc started its next set of impulse in the last few sessions which is subdividing into lower degree waves. It has also surpassed the swing high of Rs.120 and is consolidating there. The daily momentum indicator is in favour of the bulls. From the short- to medium-term perspective Rs.126 and Rs.132 will be the key targets on the upside. On the flip side, Rs.117.50-117.00 will be the key support zone on closing basis.