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MCX Zinc: Is Upside Correction Complete?

ByCommodityOnline
Published 06/10/2013, 07:29 AM
Updated 05/14/2017, 06:45 AM
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In mid April 2013, we observed a strong sell off in Bullions and Base metals. Prices have been moving lower by forming lower tops and lower bottoms.

MCX Zinc is one of the commodities which have moved lower sharply, and prices have moved down more than 20% from a high of 119 from mid April to May, 2013. Later, prices bounced back from the 97 support and moved upside. Elliott wave counts worked precisely and helped us to capture the top in this commodity.

MCX Zinc Daily chart:
MCX Zinc
Waves Analysis: As shown above in daily chart of Zinc, in the start of February 2013 prices made a high of 119, thereafter it failed to move above the previous high of 123.20 which was made three years back at the end of 2009. Thereafter, prices moved lower in an impulsive manner, breaching the extended trend line on downside, and tested the support of 97.

After a strong move down in the last three months (February-April 2013). Prices have shown smart bounce back from the support zone of 95-97 levels, retracing almost 61.8% of the prior wave. As per wave perspective, prices have completed wave and are currently moving in the form of a wave.A combination of simple technical analysis and advanced technical tools (Elliott wave theory) suggested that the current up move is the only correction of the down move from 119-9, and prices should start the down move very soon.

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