The document provides a technical analysis of MCX zinc futures, currently trading at Rs 125.05/kg, recommending a selling strategy below Rs 124.30 with targets at Rs 121.80, 119.30, and 116.80. It highlights a bearish trend reinforced by a double top pattern and a recent decline of nearly 4% from a resistance level of Rs 129.70. The outlook remains weak as prices are expected to correct if the mid-point at 124.30 is breached.

1. 5-MAY-2016
(By Rajeev Darji | T: +91-22-24902693 | Email: news@metalsupdate.com)
Note: S=Support | R=Resistance | PV=Pivot |
DISCLAIMER: THE RECOMMENDATIONS ARE BASED ON TECHNICAL ANALYSIS. THERE IS RISK OF LOSS IN DERIVATIVES. The report contains the opinions of
the author, which are not to be construed as investment advices. The author, directors and other employees of Shalimar Infotech Private Ltd. and its affiliates
cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed
above. It is intended solely for informative purposes. More disclaimer at http://metalupdate.in/design/disclaimer.html
MCX Zinc May Futures CMP: Rs 125.05/kg
Strategy: Sell Below 124.30 | Target @ 121.80—119.30—116.80 | Stoploss @ 127
MCX Zinc Chart Shows Bearish Signal; Downtrend May Continue
The MCX Zinc has declined nearly 4% in the past few trading sessions after reverting from the resistance level of 129.70 (Point
D).
The 5-hour technical chart shows that a Double Top Pattern, which indicates a bearish signal, was formed when prices
reached at 129.70. The pattern’s mid-point is at 124.30 (Point C).
Zinc had witnessed a similar movement earlier in April when prices reached 129.80 (Point B) but couldn’t sustain at higher
levels and fell to around 124 levels due to selling pressure.
The current scenario looks similar, indicating that prices would correct going forward. The outlook for zinc is weak if prices
break the mid-point level of 124.30. Zinc for May delivery is currently quoting at Rs 125.05/kg.
A fall below 124.30 would take zinc prices down to 121.80—119.30 levels in the near term. The chart indicates that prices
could further decline to 116.80 after breaking the 119.30 level.
On the higher side, zinc is expected to face immediate resistance at 127. If it rises from the current level and crosses the im-
mediate resistance on closing basis then prices may gain further to test 129.70 levels.