October 22, 2010, Zinc on a trek

MCX Zinc is rising in a medium term rising channel. The daily chart shows that it has broken out from a flag correction. The correction found support at the lower end of the channel as well as at 21 and 50 DEMA. Zinc has started forming a higher top - higher bottom pattern on the daily chart, which is a bullish sign. The larger pictureshows that Zinc has broken out from a long term falling trendline. Daily MACD has formed a zero line reversal and has started the next cycle up. Unless the base metal breaks,the bottom of the recent consolidation ie 104.6, and the upper end of the channel ie 118 would be the targets from a medium term perspective.

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