Lead futures has largely been flat since early May. It is currently hovering around ₹179.50 (per kg).
The chart shows that the contract has been oscillating between ₹177.50 and ₹180 for over a month now. In the last two weeks, lead futures has been consolidating in a narrower range of ₹178.50-180.
While the trend has largely been sideways, there are positive signs now. The price action shows that lead futures has formed a higher low and the contract is now trading above both 21- and 50-day moving averages.
Building on this, if lead futures surpasses the resistance at ₹180, it can move up to ₹184. A breakout of this can lift the contract to ₹190.
On the other hand, if the contract declines, it can find support at ₹178.50 and ₹177.50. A breach of the latter can result in a quick drop to ₹176 and ₹174.
As the chart suggests, the contract has a series of support levels. Only a decisive breach of ₹174 can turn the broader outlook bearish.
Trade strategy
Buy lead futures (Jun) if it breaks out of ₹180. Target and stop-loss can be ₹184 and ₹178 respectively.
Published on June 16, 2025
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