Posted by : Niti Mathur
MCX Zinc formed a large ending diagonal and tumbled down sharply from there. It has done a pullback, which has remembered 78.6% of the past fall and from that key Fibonacci level it has begun falling by and by. On the down trend, it has broken a transient climbing trend line. Lead has framed a bearish banner example beneath the trend line, which demonstrates that the following round of offering is around the corner. The daily momentum indicator that has been showing a negative divergence has triggered a bearish crossover. Thus, the base metal is poised for a fall till 105.70-103.70 from a short-term perspective. A reversal can be placed at 111.30 on a closing basis. Copper rose on Wednesday, the fifth session of modest gains, after upbeat economic data from the United States and the euro zone, but gains were capped by signs that China's economy is stalling. Data from the world's biggest economy showed U.S. new home sales hit a five-year high in June and manufacturers increased output in July at the fastest rate in four months.