Zinc Marching higher 23 February 2016
The adjacent chart shows the price movement of MCX zinc continuous contract. In its recent rally, ie from Rs.96.65 to Rs.120.00 zinc formed an impulse on the upside. After the impulse formation, the commodity entered a short-term correction mode. It formed a three-wave correction and found support near 20-day moving average. As per the Elliott wave theory, zinc has started its next set of impulse in the last couple of sessions. It has also surpassed the swing high of Rs.120. The daily momentum indicator is turning in favour of the bulls. From short-to-medium term perspective, Rs.126 and Rs.132 will be the key targets on the upside. On the flip side, Rs. and Rs. will be the key supports.