Commodities

MCX-Lead on a downtrend

Yoganand D BL Research Bureau | Updated on September 28, 2020 Published on September 28, 2020

The October futures contract of lead on the Multi Commodity Exchange of India continues to trend downwards from the early August high of ₹157. While trending down, the contract breached a key supportat ₹153 and extended the down-move. On Friday, the contract declined 0.8 per cent, breaching a support at ₹148 , and continues to hover below this level. The contract began the week on a marginally positive note at around ₹146 and started to decline; it now trades at ₹145.7-levels. The near-term outlook is negatively biased. The outlook will remain bearish as long as the contract trades below ₹150-levels. If it declines below the immediate support level of ₹145, then it can trend downwards to the subsequent key support level of ₹140. Next support is placed at ₹134. The September contract, likely to expire this week, is trading at ₹149 with a negative bias. On the other hand, if the contract conclusively moves beyond the support at ₹150, this will alter the short-term downtrend and take the contract upwards to ₹154 and then ₹158.

 

Traders can short the contract on rallies with stop-loss at ₹150. A conclusive fall below ₹145 can pull the contract down to ₹140.

Note: The recommendations are based on technical analysis.

There is a risk of loss in trading

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Published on September 28, 2020
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