The upmove in Zinc price seems to be losing steam. The Zinc Futures contract traded on the Multi Commodity Exchange (MCX) rose to a high of ₹271.45 per kg last week and is turning down from there. The contract is currently trading at 267 per kg. Is this turnaround in the price going to be trend reversal or just a correction within the broader upmove? Here is an analysis.
Outlook
The broader trend is still up. As such any fall from here is just going to be a correction within the uptrend. Immediate support is at ₹265. Below that ₹263 and ₹260 are the next important supports. So, the downside could be limited to ₹263 or ₹260 if the contract declines below ₹265. A fall below ₹260 looks less likely now. Moving average crossovers on the daily chart also strengthens the bullish case. It indicates that the uptrend is likely to remain intact and the downside could be limited.
A bounce from ₹265 itself or after an extended fall to ₹263-₹260 can indicate the resumption of the broader uptrend. That leg of rise can take the MCX Zinc Futures contract up to ₹275 and ₹280 in the coming weeks.
The bullish outlook will get negated only if the contract declines below ₹260. If that happens, a fall to ₹254-253 can be seen. But such a fall looks less probable.
Trade Strategy
Traders can go long now at ₹267. Accumulate on dips at ₹265 and ₹263. Keep the stop-loss at ₹259. Trail the stop-loss up to ₹269 as soon as the contract as soon as the contract goes up to ₹271. Move the stop-loss further up to ₹272 and ₹274 when the price touches ₹274 and ₹276 respectively. Exit the long positions at ₹278.
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Published on July 28, 2025
