Lead futures (continuous contract) on the Multi Commodity Exchange (MCX), after moving out of the ₹184-187 range in early September, started to consolidate within ₹187 and ₹190. Therefore, the contract was largely sideways but shifted the price band upwards.
However, the price action is bullish, indicating a rally from here, potentially to ₹192 in the short run. After touching this level, the trend might turn downwards. On the other hand, if the contract slips below the support at ₹187, where a rising trendline also coincides, the price can drop to ₹184, a breach of which will turn the trend bearish.
If the price slips below ₹184, the contract might witness a decline to ₹176-177 price band.
We suggested a long position at ₹187 last week. Since lead futures touched ₹190 on Monday, the revised stop-loss would be at ₹188. This was triggered on Tuesday, a truncated session.
Since the trend remains bullish, traders can consider fresh longs. Buy lead futures now at ₹188 with a stop-loss at ₹186. Book profits at ₹192.