Zinc broke the resistance levels of 181 INR and 196 INR in this week itself before settling at 197 INR with a huge green bar on the weekly chart which is considered to be very bullish.
Last weekend i had analyzed the metal in this article.
Question still broadly remains where will the rally dry up ? Technically chart shows resistance at 208.3 INR with Dollar index expected to rise even higher due to the Rate hike in December by U.S Federal Reserve now a certainty on consensus polls.
Currently both the dollar and zinc are in an uninterrupted bull run even though both are inversely related on the prices, taking into a higher dollar which is hugely negative for commodities is having no impact on this metal price rise.
A take down of 196 INR signals the strength of the rally till its next resistance level of 208.3 INR after which some profit taking interest might emerge.
Probability of making new highs is not ruled out either if the metal sees more buying interest above 208.3 INR.
From above, its still not clear whether the metal makes new highs on the chart or will attract profit taking thus making a trading call on it very tricky after it reaches 208.3 INR.
One can take a positive view to participate in the bull run for another 9 points, after which global factors will decide the fate of the price movement in coming weeks.