Zinc on a spring board
MCX Zinc has fallen sharply in the last few weeks. From the high of 136.90 it has reached the medium-term rising trendline. The base metal seems to be finding support near the trendline. In terms of price pattern, the commodity seems to have formed an expanding ending pattern. The short-term momentum indicator is showing a positive divergence and suggesting that a bounce is on the cards. Unless the recent low of 114.6 breaks on a closing basis, zinc can bounce till 121 and 123, ie the 20- daily moving average and the 38.2% retracement mark respectively.