The price of lead witnessed a fairly sharp correction from the highs of Rs 118.95 levels as on 31st
Aug, 2011 to register a low of Rs 111.20 levels recently.
But, as shown in the chart above, the price action of Lead over the past few session of trade has taken shape of a bullish inverted head & shoulder pattern on its intraday charts.
This is a bullish reversal price pattern and suggests that the prices are likely to start a near/short term uptrend once it gives a sustained break above the neckline resistance placed at the Rs 113.30 levels.
Some of the other key technical indicators that support the bullish argument mentioned above are that the MACD indicator is trading in buy mode and the prices are also sustaining above its key moving average clusters.
We recommend traders to buy above Rs 113.30 levels with a stop loss placed below Rs 112.05 levels for upside targets of Rs 114.75 / Rs 115.50 levels expected to be achieved over the upcoming 2-3 sessions of trade.
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