Lead futures (December contract) on the Multi Commodity Exchange (MCX) has seen a recovery this week after depreciating over the past three weeks. The support band of ₹180-181 arrested the fall.
The chart shows that lead futures may move up to ₹186 in the forthcoming sessions. Both 20- and 50-day moving averages lie in the ₹186-187 price band. So, a breach of ₹187 can turn the outlook positive and lift the price to ₹192.
On the other hand, if it declines and slips below ₹180, we are likely to see another leg of downtrend. The nearest support below ₹180 is at ₹175. Subsequent support is at ₹170.
Trade strategy
Last week, we recommended going long at ₹181, with stop-loss at ₹179. Hold the long positions. When the contract rallies past ₹184, tighten the stop-loss to ₹182. Book profits at ₹186.