In our last blog as we wrote about zinc that all are stuck in zinc. In overall outlook we said: Resistance is now seen near 180 zones, in the upper side stability above this levels zinc will open the doors for a retest to 200 zones.
Zinc continued moving up side and headed a high of 185.60, and settled well above near term resistance of 180 clearing the way for a strong rally. Today resistance will be at 185, if sustained above this level it will attract more buyers in this trend and then a rally for upside towards 187-189 possible. Failure below 175 is needed to confirm a retest to 172-169 zones and more possible.
Momentum: Stochastic is staying above overbought line and may formed a bearish cross indicating bearish momentum. A negative divergence may occurs in coming days, if you will notice that the price is making higher high but stochastic is not making new high it is still below previous high, that means the leading indicator is not favouring the price action now.
Lagging Indicator: Zinc price is still trading above 10 SMA that is trending upside. As per 10 days SMA if price close below 175 then it will attract buyers otherwise price may continue to upper side.
Overall Outlook: As per Momentum and MA zinc price is still strong for intraday trader there is risk if they want to go long. In the other hand as per MA short term trader should buy on dips.
Trading range for the day is expected among the key support at 175 and resistance at 190.
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