The April lead futures on the Multi Commodity Exchange have gained 5.6 per cent so far this month. It bounced off after finding support at ₹177. The contract closed at ₹187.9 last week.

Going ahead, lead futures might see a dip in price from the current level. However, this is likely to be restricted to ₹184, a support. On the back of this, the contract can see a rebound.

A potential upswing from ₹184 can lift lead futures to ₹195 in the near-term. After reaching ₹195, we might see a price correction, possibly back to ₹184.

On the other hand, if lead futures slip below ₹184, it can extend the downswing to ₹180. But this is less likely to happen.

Trading strategy

Stay on the fence. Go long on lead futures if it moderates to ₹184. Place stop-loss at ₹181. When the contract rallies past ₹190, raise the stop-loss to ₹187. Liquidate the longs at ₹195.