Zinc Out look for 12.10.2012

Recommendation: buy
 zinc between 101.50-102.50 with stop loss below 101 on closing basis for target of 106.50-108.50-111 for short term. Kindly not that here we are suggesting closing basis stop loss of 101 trader can use our yesterdays stop loss also which was 102.40 but we need minimum 2 consecutive close below this level to negate our recovery expectations

 Metal has corrected up to 90% after hitting year highs towards 115 recently. Technically Metal has reached in oversold territory and this short term bearish trend may shift towards bulls any time after a small consolidation. Now 102 levels are important to watch if metal manage to hold below that then it will try to taste contract low around 101.25 zones and stability and closing below the same may extend this fall towards 98-96 zones other wise we are expecting a recovery in this metal after testing lows around 102-101.50 zones that may take place any time.

Lead out look for trade on 12.10.2012

Lead Outlook Recommendation:

 sell lead below 114.70 with stop loss above 115.50 for target of 114.10-113.20 for the day. Buying lead on decline around 113.50-111.50 with stop loss for 109.50 (closing basis) for targeting 118-124-144. as a positional trade.

Metal is testing key support of 114 and settled below 50 days EMA, which stands at 115.70 and 10 weeks EMA placed at 115.40 that makes 116 zones a crucial level and stability below these levels would remain supportive for short term lead bears. While breach of 114 is needed to confirm more decline. RSI falling below 50 warns a weakness in this metal and fall may extend towards if metal manage to settle below 115 for 2 consecutive days. Stochastic hovering under oversold territory and hints a bearish momentum.