Zinc has been in a bull market for more than 6 months, will a higher dollar cap its run is a question asked by the aggressive move in dollar index post the U.S presidential election day.
The metal is perhaps into a bull market of its own at the moment while the gains in other base metals are paused due to a higher dollar.
On daily chart zinc broke its long term trend line at 177 INR and massive resistance at 173 INR five days back but a wave off profit taking and global cues pushed the prices back below the 173 mark. On friday, the metal finally closed at 173.25 INR above its resistance level thus resuming the uptrend even on the back of 14 yr high dollar index.
Now remains the task of breaking the long term trend line which if it does in coming days will take the price higher to 181 INR which is perceived to be yet another resistance on the chart.
While month on month , Zinc clearly broke the trend line in the start of the month.