Lead futures (continuous contract) on the Multi Commodity Exchange (MCX) moved out of a range on the upside and triggered an upward trend. The September futures of lead broke out of the ₹184-187 range last week. Last week, it closed at ₹187.5, thus sustaining above ₹187.
The contract has gone up today and is now trading at around ₹188.40. The trend is bullish and the likelihood of lead futures moving to ₹192 is high. A breach of this can lift it further to ₹195.
On the other hand, if the price slips below ₹184, the short-term outlook will turn bearish where the contract might witness a decline to ₹176-177 price band.
Last week, we recommended going long on lead futures at ₹187. Retain this trade and add longs in case the price dips to ₹185. Place initial stop-loss at ₹183.
When the contract rallies and touches ₹190, tighten the stop-loss to ₹188. Book profits at ₹192.