Lead futures (January contract) on the Multi Commodity Exchange (MCX) has been charting a horizontal trend for the past three weeks. It has been fluctuating within ₹182.50 and ₹183.50.
Before getting into the consolidation phase, lead futures’ price dropped. However, the bears have lost traction, which has led to the sideways crawl.
Notably, there is a strong support band between ₹180 and ₹182. We expect lead futures to rebound on the back of this support region.
The potential upswing from the current level can take lead futures to ₹186. But in case the contract falls below ₹180, we might see another leg of downtrend, possibly to ₹172.
Trade strategy
We recommended buying lead futures at ₹182 last week. Hold this trade. Add longs if the price dips to ₹180. Maintain stop-loss at ₹178. Book profits at ₹185.