Key Moments
- Zinc futures at ₹374/kg have been advancing steadily over the past two weeks, reinforcing a strong short-term uptrend.
- The July contract has cleared key resistance levels at ₹367 and ₹372 and is now trading above both the 21-day and 50-day moving averages.
- Analysts project potential upside toward ₹390 and ₹400, while identifying support between ₹367 and ₹363 and deeper downside levels at ₹357 and ₹350.
Uptrend Strengthens Above Key Technical Levels
Zinc futures at ₹374/kg have been moving higher consistently over the last two weeks, with current price behavior pointing to a strong upward trend and an elevated likelihood of additional gains.
The July futures contract rebounded after finding support at ₹350, and earlier this week it moved above trendline resistance at ₹367. The contract has since broken through another hurdle at ₹372. Price is now trading above both the 21-day and 50-day moving averages, reinforcing the prevailing bullish structure.
Upside Targets and Potential Breakout Levels
Based on the present chart configuration, zinc futures are expected to stage another advance, with the price seen potentially rising to ₹390 in the near term. A clear break above ₹390 is viewed as a trigger that could extend the rally toward ₹400.
| Key Level | Role | Implication if Broken |
|---|---|---|
| ₹400 | Extended upside objective | Achievable after a sustained break above ₹390 |
| ₹390 | Near-term upside target / breakout level | Breakout can open room for a move to ₹400 |
| ₹374 | Current futures price | Pivot area within the ongoing uptrend |
| ₹372 | Recent resistance now turned support | Holding above supports the bullish bias |
| ₹367 | Former trendline resistance / support band upper edge | Part of the first key support zone on pullbacks |
| ₹363 | Support band lower edge | Break below can pave the way for a deeper decline |
| ₹357 | Lower downside level | Potential next target if ₹363 fails |
| ₹350 | Major support / prior rebound point | Could be revisited if weakness extends |
Downside Risks and Support Zones
If the July contract retreats from the current level of ₹374, initial support is expected to emerge in the ₹367-₹363 band. A decisive break below ₹363 could accelerate downside pressure, with the decline potentially extending to ₹357 and, in a weaker scenario, back toward ₹350.
Despite these risks, the current balance of forces still favors buyers over sellers, and the probability of a renewed rally remains high under the existing technical backdrop.
Suggested Trading Approach
The recommended strategy focuses on participating in the prevailing bullish trend, while defining risk clearly:
- Enter long positions in July zinc futures at ₹370.
- Place an initial stop-loss at ₹360.
- When the price advances to ₹382, raise the stop-loss level to ₹375.
- Book profits at ₹390.
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