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Lead futures (January contract) on the Multi Commodity Exchange (MCX) has been in a sideways crawl for nearly two weeks. It has been oscillating in a tight range between ₹182.50 and ₹183.50.
Prior to this horizontal movement, the contract saw a decline. The downswing is expected to be over since the contract has a strong support band between ₹180 and ₹182. We anticipate a bounce in price from the current level or after a dip to ₹180.
If such a rebound occurs, lead futures could rally to ₹186. On the other hand, if the contract slips below the support at ₹180, it might establish another leg of downtrend, possibly falling to ₹172.
Trade strategy
As it stands, the bulls have a good chance to establish a rally on the back of the support band of ₹180-182. So, traders can buy lead futures now at ₹182 and add longs if the price dips to ₹180. Place stop-loss at ₹178. Book profits at ₹185.
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