Comments
Lead futures (February contract) on the Multi Commodity Exchange (MCX) have been on a decline since the beginning of this year. However, after reaching ₹175 a couple of weeks back, the contract rebounded.
Although there has not been confirmations of a bullish trend reversal, the current price action indicates a potential upside to ₹182, which could be a corrective rally. For lead futures to turn the trend bullish, they should break out of ₹184. If ₹184 is breached, lead futures could extend the rally to ₹190.
However, if the contract falls from the current level and breaks below ₹175, it will open the door for another leg of downtrend. Support below ₹175 can be spotted at ₹166.
Trading strategy
As there is a good chance for lead futures to see a rally from here, one can buy at the current level of ₹178. Add longs in case the price dips to ₹176.50. Place the initial stop-loss at ₹174.80.
When the contract touches ₹180, tighten the stop-loss to ₹178. Book profits at ₹182.
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.