The Upmove in zinc price seems to be losing steam. The Zinkfutures contract that was traded on the Multi Commodity Exchange (MCX) rose last week to a peak of £ 271.45 per kg and changes from there. The contract is currently being traded at 267 per kg. Will this change in the price trend in price or only a correction within the wider Upmove? Here is an analysis.
Prospect
The wider trend is still on. As such, every fall from here will simply be a correction within the upward trend. Immediate support is at £ 265. Below £ 263 and £ 260 are the next important support. The disadvantage can therefore be limited to £ 263 or £ 260 if the contract drops below £ 265. A fall below £ 260 now looks less likely. Verhoevende average cross -overs on the daily graph also reinforces the bullish case. It indicates that the upward trend will probably remain intact and that the disadvantage can be limited.
A bouncing of £ 265 itself or after an extended fall up to £ 263- £ 260 can indicate the resumption of the wider upward trend. The MCX Zink Futures contract can bring that leg of rise to £ 275 and £ 280 in the coming weeks.
The Bullish Outlook is only canceled if the contract drops less than £ 260. If that happens, a fall up to £ 254-253 can be seen. But such a fall looks less likely.
Trade strategy
Traders can now go for a long time at £ 267. Collect themselves on dips at £ 265 and £ 263. Keep the stop-loss at £ 259. Trail the stop-loss up to £ 269 as soon as the contract as soon as the contract goes to £ 271. The stop-loss moves further to £ 272 and £ 274 when the price is £ 274 and £ 276 respectively. Leave the long positions at £ 278.
More so
Published on July 28, 2025
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