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Tuesday, October 11, 2011

MCX LEAD OCT Contract – Technical Outlook & Trading Strategy


The price of Lead has been consolidating between Rs 100.50 to Rs 94.50 levels over the past few sessions of trade. The price was also facing stiff resistance at its 8-day moving average on pullbacks. But, the smart move witnessed during the previous session of trade has helped the price of lead to register a close above its key near term moving average. This is a sign that the prices of lead are going to trade with a positive bias and thus test levels of Rs 99.50 and / or Rs101.25 levels.

Strong surge in volumes and a fresh buy signal given by the MACD indicator support the bullish price action mentioned above.

We recommend traders to buy between Rs 97.50--Rs 98.25 levels with a stop loss placed above Rs 96.40 levels for upside targets of Rs 99.75 / Rs 101.25 levels expected to be achieved over the upcoming 3-4 sessions of trade.

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