MCX Lead retains sideways range

The Lead futures contract on the Multi Commodity Exchange (MCX) continues to remain range-bound. The contract has been stuck inside the range between ₹155 and ₹168 over the last couple of months.

Within this range, the contract made a high of ₹165.15/kg on Monday and has declined over 3 per cent to ₹159.4.

The sideways range remains intact for the contract. There is a strong likelihood of the contract falling to ₹157 or ₹156 in the near-term. A break below ₹156 can take it further lower to ₹155 — the lower end of the range.

If the contract manages to bounce from ₹156 or ₹155, then it can pave way for an up move to ₹165 and the upper end of the current sideways range thereafter.

The contract will need to breach ₹168 decisively to gain fresh bullish momentum.

A decisive close above ₹166 could be an initial sign indicating that the contract can rally breaking above ₹168.

In such a scenario, it can target ₹170-171 or even higher levels.

But if the contract breaks below ₹155 decisively, then it can come under renewed pressure. Such a break can trigger a fresh sell-off and will increase the likelihood of the contract tumbling to ₹150.

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

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