MCX Zinc: Ending Diagonal and reversal

MCX Zinc which surged from the lows of 96.65 and touched till 157.85 levels this month is now going to end its up move and the possibility of a stealth bear trend will start in this metal.

As per wave perspective, after making the low of 96.65, prices moved up in a three wave structure (a-b-c) in which wave a completed at 124.50 and wave b which ended in a complex structure at 122.55 levels. Wave c which was an impulse structure in which wave iii was extended and wave v completed by forming a ending diagonal pattern.

After completing the ending diagonal pattern, prices are now moving lower. I think the trend has changed and prices are poised to move lower. The immediate support is at 145 levels which is the support of the channel. Break of this channel will infuse further selling pressure in this metal dragging prices lower till 135-138 levels.

MCX Zinc Daily chart (1st month continuous contract)


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