Zinc can bounce to Rs 108-109

As can be seen from the chart, MCX Zinc formed a large wedge pattern, which got over at the high of 119.10. From there, the commodity has fallen sharply. It is falling in a channelised manner and has fallen below the 61.8% retracement of the previous rise. As a result of the sharp move, the daily momentum indicator was beaten down into the oversold territory and is now recovering from there. A higher time frame, ie the weekly chart, shows that the base metal has fallen from the weekly upper Bollinger Band towards the lower Band and has taken support there. All these signs suggest that zinc can surpass the upper end of the falling channel and can bounce till 108-109. The reversal can be revised to the recent low, ie 102.45(http://www.moneycontrol.com/news/brokerage-recos-commodities/zinc-can-bounce-to-rs-108-109-sharekhan_841979.html)