Zinc futures may have reached their lowest point, according to technical analysis experts. After a steady decline, the commodity is showing signs of bottoming out and could potentially see a rebound in the near future.
The recent drop in zinc prices has been attributed to the ongoing trade tensions between the US and China, as well as the global economic slowdown. However, technical indicators suggest that the market may have reached a turning point.
The Relative Strength Index (RSI) for zinc futures has fallen to a level of 30, which is considered oversold. This indicates that the commodity may have been undervalued and could see a reversal in its downward trend.
Additionally, the Moving Average Convergence Divergence (MACD) indicator has shown a bullish crossover, further supporting the possibility of a price increase in the near term.
Experts also point to the support level of Rs 150 per kg for zinc futures, which has held strong in the past and could act as a floor for the commodity’s price.
However, it is important to note that technical analysis is not a guarantee of future performance and other factors such as global demand and supply could still impact zinc prices.
In conclusion, while the current market conditions may seem bleak for zinc futures, technical analysis suggests that the commodity may have bottomed out and could see a potential rebound in the near future. Investors should closely monitor the market and consider all factors before making any investment decisions.
