Lead consolidates near support zone

The downward trend in lead futures began in May last year after the lead futures hit a wall in the 194-196 pound price range. The latest decline started in early December, when the expiring month (January contract) fell from ₹184. The closing price on January 17 was ₹177.70.

However, since the beginning of this month, lead futures have eliminated their downward bias. There is no bullish reversal yet, but the contract is trending sideways between ₹176 and ₹178.50.

The long-term chart of lead futures shows that the ₹173.50-176 price range is a strong support and has been in effect since June 2021. Also, the contract has fluctuated between the above support band and ₹196 since June 2021. .

Lead futures are currently trading near the lower end of the range, and a recovery is likely. Gradually, the contract may rise towards the upper end of the range at ₹196, providing traders with an opportunity to execute a long position.

trading strategy

On January 1st, we recommended buying lead futures at ₹176 with a stop loss at ₹172. Please hold this transaction.

Since the price has not moved much since the beginning of this month, new traders can also consider setting the stop loss at ₹172.

Once the contract reaches ₹184, fix your stop loss to ₹180. Book profit at ₹194.