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Lead futures, which has seen its price moderate over the past week, saw a rebound on Wednesday as it found a support. The May futures closed at ₹177.40 on Wednesday.
The chart shows that this contract has bounced off the support at ₹175 twice in the last one month. This shows that the support at ₹175 is strong and the price action indicates the formation of double-bottom chart pattern.
A breakout of ₹178.50 can confirm the pattern and a bullish trend reversal. In such a case, lead futures (May) can rally to ₹182, which is also the 50 per cent retracement level of the prior downswing. Resistance above ₹182 is at ₹184.
But in case the contract declines from the current level of ₹177 and slips below ₹175, there is a support immediately at ₹174, which has been holding well since June 2021. So, a fall below ₹174 is less likely. But such a move can trigger another leg of downtrend.
Support below ₹174 can be spotted at ₹170 and ₹166.
Trade strategy
Stay out for now and go long on lead futures (May) if it breaks out of ₹178.50. Target and stop-loss can be ₹182 and ₹177 respectively.
Published on May 8, 2025
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