Lead futures (continuous contract) on the Multi Commodity Exchange (MCX) moved out of a range on the upside and triggered an upward trend. The September futures of lead broke out of the ₹184-187 range as it closed at ₹188.8 on Friday.
Today, the contract opened slightly lower at ₹188 and is now hovering around ₹187. Nevertheless, the trend is positive and the likelihood of lead futures bouncing off ₹187 or ₹185 is high. Chart indicates that the contract can potentially move to ₹192. A breach of this can lift it further to ₹195.
On the other hand, if the price slips below ₹184, the short-term outlook will turn bearish where the contract might witness a decline to ₹176-177 price band.
At this juncture, the price action hints at a rally from the current level. Therefore, traders can buy lead futures now at ₹187. Accumulate if the price dips to ₹185. Place initial stop-loss at ₹183.
When the contract rallies and touches ₹190, tighten the stop-loss to ₹188. Book profits at ₹192.