Zinc prices have declined over 2% this week, breaking key support levels. Traders are advised to monitor price action in the ₹260-259 zone and consider short positions.
Zinc prices have begun to decline this week. The Zinc Futures contract traded on the Multi-Commodity Exchange has declined over 2 per cent so far this week. This fall marks the end of the sideways consolidation that was in place for a week earlier. The MCX Zinc Futures contract is currently trading at ₹264.50 per kg.
Outlook
The fall this week has taken the price below ₹266, a key support level. This has turned the near-term outlook negative. The region between ₹266 and ₹267 will now serve as a good resistance level. The MCX Zinc Futures contract can fall to ₹260-259, the next support zone, in a week or so.
The price action in the ₹260-259 region will require close monitoring then. If the contract manages to bounce back from this support zone, a rise back to ₹265-266 is possible. However, a break below ₹259 can lead to an extended fall to ₹256.
For now, allow the price to fall to ₹260-₹259, and then observe the price action to see what happens.
Trade Strategy
Traders can go short now at ₹264.50 and add more shorts on a rise to ₹265.50. Keep the stop-loss at ₹268. Trail the stop-loss down to ₹264 as soon as the contract falls to ₹263. Move the stop-loss further down to ₹262 and ₹261 when the price touches ₹261 and ₹260, respectively. Exit the shorts at ₹259.
Published on August 19, 2025
