MCX Zinc Futures: Wait for a breakout to take fresh long positions

Zinc prices have risen sharply this week. The Zinc futures contract traded on the Multi Commodity Exchange (MCX) has surged about 8 per cent so far this year. It is currently trading at ₹342 per kg. Indeed, the contract spiked to an intraday high of ₹354 per kg in the early trades today and has come down today.

Outlook

Resistance is around ₹345. The MCX Zinc Futures contract has to get a sustained break above this resistance in order to go further higher. If it does, then there are good chances to see a rise to ₹365 in the short term.

Failure to rise back above ₹345 from current levels can trigger a corrective fall to ₹335 or even ₹320.

So, the price action today is going to be very important.

Trade Strategy

Considering the volatility, traders will have to stay out of the market for now. However, fresh long positions can be taken after the breakout above ₹345 happens. Stop-loss can be kept at ₹335. Trail the stop-loss up to ₹348 as soon as the contract goes up to ₹353. Revise the stop-loss higher to ₹351 and ₹357 when the price touches ₹356 and ₹360 respectively. Exit the long positions at ₹365.

Since the volatility is high, this trade is only for high-risk appetite traders. Risk averse traders can stay out.

Published on January 29, 2026