MCX Lead Jan inched 1.30 rupees up to settle at 118.90 this week. Lead headed a low of 114.70 and nicely recovered by getting support near horizontal line and 78.6% Fibonacci correction of previous bullish attempt and settled with a hammer candlestick pattern that hints a possible trend reversal. Hammer pattern is a bullish reversal candlestick pattern. Prices have fallen below 10, 20 and 50 weeks SMA and hinting a down trend in this counter. MACD has been staying in bearish territory and recently it has shown a hook that hints a strong down trend in this counter. Stochastic has recovered from oversold territory and now again getting support at oversold line and also hinting a possible bullish divergence that indicates weakening bearish momentum. Immediate support is now seen near 114.70 and then at 114.30 zones. Any stability below these levels would bring more weakness in this counter and then we will see this metal falling towards 111 and then 107 zones. Stability above 114 would keep chances alive for a bullish attempt. Resistance is now seen near 119.40 zones any sustained move above that level would bring this metal towards 123-125 zones.
Lead trading range for the week is expected among the key support at 114 and resistance at 119.4.
Â· Lead Buy around 116-115.40 sl below 114 trgt 122-125.
Â· Lead Buy above 119.40 sl below 118 trgt 121-123.
Â· Lead Sell below 114 sl above 116 trgt 112.50-110.50.
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