Zinc: In southern territory
MCX Zinc faced resistance at a crucial hurdle ie at the long term falling trendline. Since then it has started a journey towards south. On the way down it has broken the 20-day moving average (DMA), the 40-day exponential moving average (DEMA) and the medium term rising trendline. In the last session it has retested the trendline. The daily momentum indicator was showing a negative divergence and has triggered a bearish crossover. Thus zinc seems to be set for a significant decline. The short term target is Rs101.3 ie the swing low whereas the medium term target is the long term rising trendline ie near Rs93. The view holds true as long as the bears keep zinc away from the level of Rs106.10.