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Zinc
The Zealous Metal
Zinc Feb BUY
CMP: `187.50 (As on 03rd Feb, 2017)
Buy: `187.50-184
Target Price: `198-207
Stop-Loss: < `182
Zinc has come a long way since its inception structure. Thus, we can see that waves 1 & 2 took their
on the Indian commodity bourses. From sweet time to complete with clear markings of sub waves
trading at a high of Rs 208 to a decline below or intermediate waves. The most impulsive third rally
Rs 50, the silvery-bluish metal has seen it all. started quietly and gradually changed degrees to finally
2016 can be said as a ‘coming of age’ year propel into the most impulsive leg (iii of 3) that began
for the bullish rally in Zinc, as the impulsion in January 2016. This leg saw first barrier in the form of
swiftly shifted in the top gear with a more correction seen in December. The correction shaped like a
than two fold growth recorded during twelve typical AB=CD harmonic pattern, marking the fourth leg
month period. 2017 has also started on a (IV of 3) of the primary wave 3. The 18% correction has
positive note and it seems that the impulsive really set the stage for the bulls again and from here we
rally is all set to jump into new territory after a expect another round of impulsion that may take prices to
healthy correction seen in December, last year. record highs.
Technically, the overall chart structure is We recommend buying in February Zinc contract at
powered by highly impulsive bullish rally that CMP Rs 187.50 and on dips till Rs 184 for targets in the
began in January 2009 and is systematically range of Rs 198-207. Maintain stop loss below Rs 182.
following the basics of a typical Elliott wave
8 ARIHANT CAPITAL ¡ FEBRUARY 2017
