Lead futures (March contract) on the Multi Commodity Exchange (MCX) saw a drop in price in the past few sessions. It fell off the resistance at ₹182, where the 20-day moving average coincides.
On Wednesday, it closed at ₹178.75. Although ₹178 is a support, lead futures could decline to the ₹174-175 price band before establishing a rally.
Once lead futures begin to rally on the back of this support, it can rise to ₹185 in the short term. Resistance above ₹185 is at ₹190.
On the other hand, if lead futures break below the support at ₹174, the outlook will turn bearish and the contract could fall to ₹160.
Trade strategy
Buy March lead futures when the price dips to ₹175. Place initial stop-loss at ₹172. When the contract touches ₹182 after the longs are initiated, tighten the stop-loss to ₹180. Book profits at ₹185.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.