MCX Zinc forming lower top lower bottom

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Adjacent chart shows the price movement of MCX Zinc continuous contract. Zinc is in a downtrend as it forming a lower top lower bottom pattern and is trading below the daily moving averages. From the recent low of 170.70, zinc has seen a pullback. However, in Tuesday’s trading session, zinc touched the downward sloping trend line but could not close above it. In the near term, 183.50 – 185 will be a crucial resistance on the way up. The downtrend remains intact as long as it does not close above 20DMA which is currently pegged at 185. On the way down, zinc can re-test the swing low of 170.70 once the pullback is complete. The daily momentum indicator is bearish.

 

 

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