Adjacent chart shows price movement of MCX Zinc continuous contract. Zinc has seen a sharp fall from 230 levels. However, it has found support around the medium term support line and bounced back. In the near term, 207.75 will act as crucial support on the way down. If it holds above 207.75 then it can bounce back towards 215 – 219 in the short term. On the flipside, if Zinc breaches the medium term support line and closes below it then a deeper correction is possible. The momentum indicator is in bearish mode.
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