Zinc: where will the rally end ?

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.


Zinc: More bull run ahead ?

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.