Zinc – Major Reversal Chart Pattern in Forming.

Zinc (18.07.2014) given major upside movement in last few weeks & probably its time for reversal.

Now zinc is trading around 2290 on LME & as we can see on weekly chart, there is a strong probability of an ABCD reversal pattern. If we look at daily chart , we find some reversal candlestick pattern also as well as indicators trading in over bought zone. We also witness a 261.8% feb correction just above the ABCD pattern finishing line. We probably use it as stoploss.

 
On fundamental side , mix global cues & fair level of inventory showing no rush move ahead.

Based on above studies, we will prefer to sell zinc for possible targets around 2128 & then may be 2010 in coming weeks. A day close above 2380 will force us to reanalyze the charts.