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The outlook for the Lead Futures (₹190 per kg) contract traded on the Multi Commodity Exchange (MCX) is turning bullish. After a fall from the high of ₹195.6 made on October 15, the contract found support around ₹185. After consolidating around ₹185 for more than a week, the contract has begun to move up this week. The overall trend is also up since April last year. The up-move that has just begun marks the beginning of a fresh leg of rally within the overall uptrend. Immediate support is at ₹188 and the next important one is at ₹184.
The contract is likely to move up towards ₹200 in the coming days. Short-term traders can go long at current levels and accumulate on dips at ₹188. Stop-loss can be placed at ₹183 for the target of ₹200. Trail the stop-loss up to ₹192 as soon as the contract moves up to ₹195. Move the stop-loss further up to ₹195 as soon as the contract touches ₹198. The level of ₹182 is a crucial support for the contract.
The uptrend will come under threat of a reversal only if the MCX-Lead futures contract breaks below ₹182. Such a break can then drag the contract lower to ₹173 and even ₹168 thereafter. But such a reversal and a strong fall look unlikely at the moment.
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