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 has retraced 78.6 percent of the previous rise.
Recently, it has formed an ending diagonal (wedge) and in the last
session, it has broken out on the upside. The daily momentum indicator
is showing a positive divergence and has given a buy signal. All these
signs suggest that the base metal is poised for a short-term bounce. The
key levels on the upside are Rs 108 and Rs 109.60. The reversal for the
bullish view can be placed below the recent low, ie 100.20.
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