Comments
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
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.