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The Lead futures contract on the Multi Commodity Exchange of India (MCX) has been trading volatile over the last couple of weeks. The contract fell to a low of ₹139.8 per kg on October 11 and then reversed sharply higher to a high of ₹156.4 on October 15. However, it failed to sustain the momentum and has come-off from those highs giving back most of the gains. The MCX-Lead futures contract is currently trading at ₹146.
The contract has been stuck in a narrow range between ₹144 and ₹148 over the last few days. The near-term outlook is unclear. Traders can stay out of the market until a clear trend emerges.
A breakout on either side of ₹144 or ₹148 will determine the next move. A strong break above ₹148 will ease the downside pressure. Such a break can take the contract higher to ₹151 or ₹152. A further break above ₹152 will then pave way for the next targets of ₹155 and ₹156.
On the other hand, if the MCX-Lead futures contract breaks the current range below ₹144, it can fall to ₹141 or ₹140. But a bounce from this ₹141-₹140 support zone can trigger an intermediate upmove to ₹145. A strong break below ₹140, will bring renewed pressure on the contract. Such a break will then increase the likelihood of the contract falling to ₹136 going forward.
Note: The recommendations are based on technical analysis and there is a risk of loss in trading.
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