Zinc: Trendline cracked
From the high of Rs108.7 MCX zinc is falling. It has broken the key daily moving averages (DMAs), viz the 20-DMA and the 40-daily exponential moving average (DEMA). In the last session the base metal had broken a mediumterm rising trendline. The daily momentum indicator is in sync with the price action. However, zinc can consolidate at the current level, ie in between the daily lower Bollinger Band and the trendline. Overall, unless the trendline and the 40-DEMA (Rs102.5) are crossed on a closing basis, zinc is expected to move further southward. The previous low of Rs95.5 would be on bears’ radar.