Lead futures approaching resistance by admin- Tuesday, August 2nd, 2022 07:10:08 AM
The rally is probably capped at ₹186
The non-stop futures of lead on the MCX (Multi Commodity Exchange), which hit a clean one-yr low of ₹166 multiple weeks again, recovered and has rallied to the cutting-edge degree of ₹179.
The chart shows that the upside is limited because the contract faces strong boundaries at ₹one hundred eighty and at ₹186. A falling trendline is projected to coincide at₹186, making it a giant resistance.
Therefore, going beforehand, the lead futures is expected to resume the downtrend at ₹one hundred eighty or ₹186. Either way, the overall bearish bias is predicted to stay and consequently, contributors can plan fresh trades therefore. On the drawback, the contract might fall to ₹a hundred and fifty earlier than the quit of this year.
A couple of weeks ago, we had encouraged investors to live out as there has been a loss of clarity. Now that the agreement is buying and selling near a resistance degree, you could keep in mind initiating fresh positions now.
Short lead futures on the MCX at the cutting-edge degree and add greater shorts while the agreement rallies to ₹186. Place stop-loss at ₹192. If the settlement movements according to our expectation and falls beneath ₹a hundred and seventy, alter the forestall-loss to ₹182.
Revise the stop-loss similarly right down to ₹170 while the fee declines to ₹one hundred sixty. Exit all of your shorts at ₹one hundred fifty due to the fact that is vital assist towards which the settlement can witness a rebound.