The chart structure shows a strong bias toward the upside.
Most likely zinc is just starting to show initial signs, yet it's a fairly strong indication of higher side move.
As long as it continues to stay above the breakout level, & closes above 238, the probability of higher levels seems fairly strong.
At this point of time, targets of 260 to 280 seem be doable.
The upside view gets invalidated, if the breakout fails and zinc starts to close and sustain below 232 levels.
Unlike stock charts that I typically study, the volumes here are not very helpful in understanding the breakout better.
Due diligence advised. This view is purely for study purposes.
Most likely zinc is just starting to show initial signs, yet it's a fairly strong indication of higher side move.
As long as it continues to stay above the breakout level, & closes above 238, the probability of higher levels seems fairly strong.
At this point of time, targets of 260 to 280 seem be doable.
The upside view gets invalidated, if the breakout fails and zinc starts to close and sustain below 232 levels.
Unlike stock charts that I typically study, the volumes here are not very helpful in understanding the breakout better.
Due diligence advised. This view is purely for study purposes.
Trade closed: target reached:
Update on Zinc study and forecast given on 20th Jul 2021. CMP then was 243.
Two likely targets were estimated based on the setup.
T1 of 260 (+6.5%) &
T2 of 281(+15%)
Zinc tested the break out levels twice, and found support on both occasions. From there on it has never looked back at the 243 support range.
It took a long two months to consolidate and then achieve the first target on 23rd Sep, by gaining 6.5%
The second up-move from there took just 20 days to add another 8.5% and to complete the target of 281 on 13th Oct.
Next what happened was not very surprising. Strong momentum has a tendency to continue and surprise. This resulted in a vertical move with Zinc gaining another +16% in just 3 sessions to make a high of 328.80.
The total move from breakout took about 3 months and returned a gain of 34% from the breakout of 243 levels.
What's Next?
For now the vertical move seems exhausted and its very likely that Zinc could consolidate and stay within the range of 282 to 325. It appears highly probable that this 15% trading range could form over the next several months.
Two likely targets were estimated based on the setup.
T1 of 260 (+6.5%) &
T2 of 281(+15%)
Zinc tested the break out levels twice, and found support on both occasions. From there on it has never looked back at the 243 support range.
It took a long two months to consolidate and then achieve the first target on 23rd Sep, by gaining 6.5%
The second up-move from there took just 20 days to add another 8.5% and to complete the target of 281 on 13th Oct.
Next what happened was not very surprising. Strong momentum has a tendency to continue and surprise. This resulted in a vertical move with Zinc gaining another +16% in just 3 sessions to make a high of 328.80.
The total move from breakout took about 3 months and returned a gain of 34% from the breakout of 243 levels.
What's Next?
For now the vertical move seems exhausted and its very likely that Zinc could consolidate and stay within the range of 282 to 325. It appears highly probable that this 15% trading range could form over the next several months.