Zinc futures has been in an uptrend since early May. The September contract is currently trading at ₹277/kg. Although the trend is bullish, the chart shows that zinc futures is now approaching a resistance.
Currently, the contract is hovering near the upper boundary of the rising channel (at ₹277), within which it has been trading since May. The nearest barrier above this is at ₹278 and ₹280. Therefore, the price band of ₹277-280 is a supply zone.
If zinc futures falls from here, it can decline to ₹270, a support. Subsequent support is at ₹265, where the contract might meet the lower boundary of the rising channel.
As the price action continues to remain within this channel, the broader uptrend stays unbroken. So, the potential price drop from the current level is likely to be only a corrective move.
That said, if zinc futures extends the rally from the current level of ₹277 and breaks out of ₹280, it will open the door to further rise to ₹290 and ₹300.
Overall, as it stands, the bull trend is yet to be invalidated but the chances of a corrective fall in price are high at the moment.
Trade strategy
Short zinc futures (September) now at ₹277. Target and stop-loss can be ₹270 and ₹281, respectively.
Published on September 8, 2025
