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Lead futures (February contract) on the Multi Commodity Exchange (MCX) was witnessing a moderate downswing in January. But since the beginning of this month, the selling has gained momentum. On Wednesday, the contract closed at ₹179.35.
- Also read: Nifty prediction today – Feb 08, 2024: Shows bearish bias, but short futures only below 21,920
The natural gas futures broke below the support at ₹182 and the price action hints at a further fall in price. The nearest support from the current level are at ₹175 and ₹172. The subsequent one is at ₹170.
On the other hand, the immediate resistance is at ₹182, where the 20-day moving average coincides. For lead futures to turn the trend bullish, it should break out of ₹182. Above this level, the nearest potential barrier can be spotted ₹185.
Trade strategy
Short lead futures at the current level of ₹180 and add shorts if the price rallies to ₹182. Place stop-loss at ₹184. When the contract falls below ₹178, tighten the stop-loss to ₹180. Book profits at ₹176.
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