The Lead futures contract on the Multi Commodity Exchange (MCX) has been volatile over the last week.
The contract rose to a high of ₹151.6 a kg on Monday and reversed sharply to a low of ₹145.3 on Wednesday.
However, the contract price managed to move higher from this low and is currently trading at ₹147.8.
Technically this bounce is significant as it has happened from around the 200-day moving average as well as a trendline support.
As long as the contract trades above ₹145, the possibility of it falling further is less. While above ₹145, a rise to ₹150 and ₹152 is possible in the near-term.
The 61.8 per cent Fibonacci retracement resistance is at ₹152.35. Inability to break above this hurdle can keep the contract range-bound between ₹145 and ₹152 for some time.
But if the contract manages to rise above ₹152.35 decisively, it can gain fresh momentum.
Such a break would take the contract higher to ₹155 and ₹156 initially. A further break above ₹156 will then pave the way for the next targets of ₹160 and ₹165.
The contract will come under pressure only if it declines below ₹145. A break below ₹145 can take it to ₹144 initially.
A further break below ₹144 can drag the MCX-Lead futures contract to ₹140.
Note: The recommendations are based on technical analysis and there is a risk of loss in trading
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.