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Zinc is currently trading at 112.25 after hitting intraday low of 110.95. Counter had been moving in a nice down trend and formed a descending trend line breakout on October 9, 2015. Now this metal is fluctuating near its 30 days SMA that stands near 111.90 zones. Prices are getting support near 110.60 which is low placed during the month of August this year. A potential inverse head and shoulder reversal pattern can be seen clearly on daily chart. According to this pattern reversal will confirm above neckline breakout that stands near 123. Recovery from today’s low of 110.95 indicates buying interest in this metal. MACD is making higher top if compared with prices and suggests a hidden divergence. However, MACD has formed a bearish cross near center line but lack of follow through selling suggests a strong support near 111-110 zones. Price has stuck in a range and volume has shrunk that indicates low participation. Respect of 109 zones will result in a rally towards 122 and then 129 ...

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

Nice buying interest seen in base metals since morning. Zinc May contract is now trading at 101.70  with 55 paisa gain sine previous closing. As shown in chart above metal is approaching near key resistance zones of 101.80-102. Zinc prices are now moving in a rising parallel channel which has a strong resistance at its mid line of 101.80 while areas of 102 are resisted by 61.8% Fibonacci retracement and sustained rebound above this level would lead a rally towards areas of 104-105 zones. MACD is now getting support at zero line and forming a bullish cross above its signal line which hints bullish momentum in this commodity. Recommendation: buying zinc between 101.50-101.30 with stop loss below 100.50 for targeting 104-105 might be appropriate in short term.