The October contracts were traded today around 3.30 pm against RS 294 per kg, an increase with RS .80 or 0.27%. In the meantime, three -month contracts on the LME fell nearly 1% and floated around $ 3007. On the SHFE, the price was 21,140 CNY/MT, Down with CNY 565 or 2.60%.
Ajit Mishra, senior vice president – research at Religare Broking, emphasized the reasons behind the recent increase in zinc, said that global zinc supplies have fallen sharply, with LME shares this year by more than 60%, which points to delivery shortages.
“While the mined zinc production has risen, bottlenecks are limited when refining the refined metal supply, to support higher prices. Risks include potential EU rates on steel that can reduce the demand of the zinc, but the current market sentiment remains positive because of the tightness of demand and foundations of the offer,” said Mishra.
Technical display
The Religare expert decoded the graphs and said that MCX Zink has a strong upward trend with prices currently near RS 293, with the most important progressing averages. This suggests Bullish Momentum with momentum indicators that confirm the upward trend, but indicates an overbough condition.
He warns of corrections or consolidation in the short term while offering support around RS 282-284, with resistance near RS 298-300 levels. “If this resistance is crossed, it can be activated further upside down to RS 310+ in the medium term,” he added.
Ehinmarkets.comTrade strategy
Recommended strategy is to go for long positions around RS 288-290 with stop loss under RS ​​282 and goals on RS 299 and RS 310.
Also read: Commodity Radar: at a lifelong height of RS 1.2 LAKH/10 grams, breaches of a large obstacle. Which exchange to make?
(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)
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