Comments
The lead futures contract on the Multi Commodity Exchange (MCX) has been stuck in a narrow range between ₹138 and ₹147 a kg over the last three weeks. Within this range, the contract made a high of ₹145.3 on November 8 and has come off sharply from there, falling about 3 per cent. It is currently trading at ₹141 a kg.
The near-term outlook is mixed. Whether the contract manages to sustain above ₹138 or not will decide the direction of the next move. Traders can stay out of the market until a clear trend and trade signal emerges.
If the contract continues to trade above ₹138 and gains strength, an upmove to ₹145 and ₹147 is possible in the near term. Inability to breach ₹147 can pull the contract lower to ₹138 again. In such a scenario, the current ₹138-147 sideways range will remain intact for some more time. But if the MCX-Lead futures contract manages to breach ₹147 decisively in the coming days, the downside pressure would ease. Such a break can take the contract higher to ₹151 and ₹152 thereafter.
On the other hand, if the MCX-Lead futures contract declines below ₹138, the downside pressure would increase. The break can take the contract lower to ₹136. A further break below ₹136 will then increase the likelihood of the fall extending towards ₹132 and ₹130 over the short term.
Global trend
On the global front, lead prices at the London Metal Exchange has been range-bound for a prolonged period of time. The LME-Lead (three-month forward) has been stuck in a sideways range between $1,870 and $2,130 a tonne since August. It is currently trading at $1,953. Immediate resistance is at $2,025. A break above it can take the prices higher to $2,100. The contract will come under pressure if it makes a decisive close below $1,900. In such a scenario, a fall to $1,860 and $1,820 is possible.
Note: The recommendations are based on technical analysis and there is a risk of loss in trading
Comments
COMMENT NOW
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.