The Lead futures contract on the Multi Commodity Exchange (MCX) continues to remain stuck in the range between ₹132 a kg and ₹137.5 for the fifth consecutive week. The contract made a low of ₹131.65 on Tuesday and has reversed higher from there. It is currently trading at ₹134.4 per kg. Since there is no major move in the contract, hence there is no change in the outlook. A breakout on either side of this range will determine the next trend for the contract.

At the moment, the contract has managed to sustain above ₹132 and is bouncing back, there is a strong likelihood of it rising to test ₹137 – the upper end of the range in the near term. Key resistance is in the ₹137-₹138 region. A strong break above ₹138 is needed for the contract to gain fresh momentum. The downside pressure will ease in such a scenario and will also give initial signal of the downtrend that has been in place since February getting reversed. Such a break above ₹138 can take the contract higher to ₹140 initially. Further break above ₹140 will increase the possibility of the contract extending its upmove to ₹144 or ₹147 thereafter.

On the other hand, if the MCX-Lead futures contract breaks the current range below ₹132, it may come under renewed pressure. A fall below ₹132 can take the contract lower to ₹130 initially. Further fall below ₹130 can drag it to ₹127 or even ₹125 thereafter.

Note: The recommendations are based on technical analysis and there is a risk of loss in trading

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