Comments
The futures contract of lead on the Multi Commodity Exchange (MCX) has rallied continuously since June last year from about ₹130, which has acted as a strong support. Though the contract faced intermittent corrections in price, it recouped its strength and continued to travel upwards. But after registering a fresh one-year high of ₹181.3 in the final week of February, the contract reversed the trend. It dropped steeply and hit a low of ₹157.25, thereby losing a little over 13 per cent in two weeks.
However, the decline has been arrested and after ruling sideways for a few sessions, the bulls have started to gain an upper hand to gradually push the contract northwards. Therefore, the price action over the past month shows that the contract has been gradually building momentum. Supporting the positive bias, the price has moved above both 21- and 50-day moving averages (DMAs) and the former has crossed over the latter, giving the contract a positive medium-term outlook.
Moreover, the daily relative strength index that slipped below the mid-point level of 50 i.e., into the bearish zone is now back above that level and the moving average convergence divergence indicator on the daily chart, which entered bullish terrain last week, continues to chart a positive trajectory. But notably, ₹167 is a hurdle. Hence, traders can buy MCX lead April futures with stop-loss at ₹165 if it breaks out of ₹167. The contract is likely to touch ₹170 and ₹173 in the short run.
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.