Comments
Lead futures contract on the Multi Commodity Exchange (MCX) encountered a key resistance at ₹162.7 on Tuesday and started to decline.
The contract has moved below its 200-day moving average at 158.7 recently and currently trades at ₹157.8 per kg.
Following an upward break out of a sideways range, it met with a key medium-term resistance and 50 per cent fibonacci retracement level of its prior downtrend at ₹162. This level can continue to act as a key resistance in the near-term.
Only a decisive break above this level will reinforce the short-term uptrend that has been in place from the support level of ₹150.
Such a breakthrough can pave way for an up move to ₹165 and then to ₹168 in the short-term.
But, a tumble below the immediate support at ₹156 will drag the contract down to ₹153 and ₹150 levels in the short-term. In that case, the medium-term downtrend that has been in place from the February peak of ₹172 will be intact.
A downward break of the key support at ₹150 will further drag the contract down to ₹146 and ₹143 levels in the medium-term.
Traders with a short-term view should tread with caution and initiate fresh short positions on a decisive fall below ₹156 levels. Targets are ₹153 and ₹150.
Note: The recommendations are based on technical analysis and 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.