Zinc daily momentum is in sell mode on daily charts. Prices paused near the 204 mark that can be a double top in wave 5. A move higher can mean that wave 5 is still extending. But till then we have made a near term peak that can result in a wave iv of 5 consolidation or a double top. Next support is at 191. A wave iv consolidation should not see us fall below 38.2% retracement near 193, so 193-191 are important supports, below which we could be in a larger decline or correction to the trend.
Crude is forming a long term triangle in wave B. Wave E down is the final leg of the triangle and in it prices can test the lower trendline near 2750 before completing the pattern.
Agro commodities are declining again in either wave Z or E on long term charts. I reworked Corn, to expect wave C of Z down. Wave B of Z retraced 66% and is a triangle and wave C=A goes down to 270. I was expecting a bottom near the 2009 low and we may test it once more near the 290 level.
Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd