The rally in the price of lead futures on the Multi Commodity Exchange (MCX), that began in June 2020 from about ₹128, witnessed a corrective decline in September. But, prices resumed the uptrend in October from about ₹140 and, as a result, the January series marked a high of ₹164 before a month from now.

Unable to get past that level, the contract started to moderate. The correction dragged the price down to ₹155, losing nearly 6 per cent from its recent high of ₹164. But the contract found support in the form of 50-day moving average (DMA) at ₹155. Moreover, the 50 per cent Fibonacci retracement level of the previous uptrend coincides at this level, adding to the strength of the support.

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On the back of this, the contract started rising with significant amount of volume, hinting at the revival in the uptrend. As price rallied, the contract moved past the resistance at ₹160 and the price is now above the 21-DMA.

Traders can buy MCX-lead with stop-loss at ₹155. A rally from here can take the contract towards the previous high of ₹164. A breakout of this level can lift the price to ₹168. Above that level it can appreciate to ₹175.