ZINC – Still sometime to go short??

As most of the commodities are relaxing after last one and half months rally.  Similarly Zinc 1 month MCX contract is moving flat from last few days.  As on 28 Dec, 2012 Zinc closed at 111.35.  Last few days back it broke from its rising trendline, but as such we have not seen any follow through action barring few choppy sessions, but in last session prices has engulfed last fourteen trading sessions price movement and closed in red, at first instance which indicates that Bears are active now.  Momentum is fading to support the basis.  Based on above observations, I sense that if we see follow through action on Monday, than Zinc has potential to go down further.

ZINC - 111.35

                                                          ZINC – 111.35

I am little skeptical only because of Christmas & New year holiday in US.  Traders can take short position keeping trading stop loss of 113.40, with an initial target o 108.

 

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