Mcx lead future in month of September, closed at 163.2 with gain. This was almost forth gaining month for mcx lead future and in these 4 months we saw rally from low of 131 to highs of 164.5 rupee. In September, mcx lead future hit high at 164.5 while recorded low of 143. Total almost 21 rupee month range and strong positive closing for mcx lead future on continues strong follow up buying.
For month of October, mcx lead future major support is at 157 rupee and above it lead will remain strong and trading strategy will remain buy on dips with stop loss for big upside targets. On upside 170 and 178 are major resistance zones as well as bullish targets for this series.
On daily chart, mcx lead is in strong uptrend and above 157 will remain buy. On upside 170 and 178 are major resistance zones as well as target level if uptrend continues. Daily chart RSI is at 73 with bullish divergence in overbought zone and MACD is at 4.8 with strong bullish crossovers.
So metals commodity traders, above 157 rupee level keep buy on dips view on lead future for swing targets 170 and then 178 rupee but keep in mind that prices are trading in overbought conditions so if correction and profit booking comes it will be strong and sharp. Daily closing below 157 means downtrend and sell side targets of 149 to 135 rupees.