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Rounding Bottom in Zinc Hints a Primary Rally up to 106.90

Rounding bottom zinc may 29

Here is the daily chart of ZINC MCX showing rounding bottom which is considered a bullish reversal pattern. Commodity has been trading in ranges of 100-104 for more than 40 days. Today metal has broken out its key resistance of 104. A bullish continuation candlestick pattern named rising three Method has also appeared recently which is a trend continuation pattern. As per current developments we can say areas of 101.50 has become strong support and stability above 104 on daily closing basis would bring 106.90 and 108 on cards. 14 periods RSI is also moving up along with bullish divergence. RSI producing 62.55 reading and reading above 50 is considered bullish signal.

Recommendation: Buying zinc on between 104.10-103.80 with stop loss below 101.50 for targeting 106.90 and more upside might be appropriate in short term, currently trading at 104.25

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