Mcx lead future this week closed at 147.35 with loss. This was first weekly loss for lead prices after last week’s big both side move. This week we saw mcx lead hit low at 146.95 while high was at near 154.25. Total 7 rupee range and strong profit booking throughout the week.
On weekly chart, mcx lead future price trend is bullish but momentum is fading and on account of that prices are retracing towards major support zones. Mcx lead is now below 5 weeks average of 148.3 and heading towards 20 and 50 weekly averages levels. Which are now at 145.7 and then 142 rupees respectively. On upside 173 and 209 are long term resistances as well as my 2017 investment targets. Mcx lead weekly chart, RSI is 52 level with bullish divergence and MACD is with bullish divergence and buy signal given around 143 rupee levels.
For month of august, mcx lead prices opened at support of 147 and since then trading above it and heading higher and hit my given bullish swing target of 153.7 and then hit 158.2 and recorded high at 161.5. Above 158.2 entered super bullish trend but not sustained and was heading for 164.8 and 169 target zones.
For next week, Mcx lead future above 147 rupee support zone will remain buy and accumulate for my bullish targets of 153.7 and then 158.1 rupees. On downside 147 and 145.5 are major support zones on chart. And this week we saw high of 154.25 and lead prices hit 153.7 targets once again.
Mcx lead future daily chart price trend and patterns are strong bullish and now trading at 50 days average level and below 5 days and 20 days averages with short term bearish action. 147 is 50 days average level and last support of this short term uptrend and above it 150.1 is 5 and 20 days average level and strong supply zone on daily chart. If hold 147 level then expect 153.7 and 158.2 on upside again. If fail to hold 147 then expect exaggerated sell off up to 142 to 136 rupee on downside. Lead daily chart RSI is at 46 with fresh sell signal given at 152.55 levels. While MACD is above zero but with bearish divergence.
From long term view, mcx lead taken support at 140 rupee and now remain buy and accumulate for long term target of 173 rupee above it. We saw high of 161.5 rupee in previous week.
In last 7 months, mcx lead prices given five negative closings while 2 were with gains which on monthly chart suggesting long term bottoming out process. 130 rupee bottom will remain important level for long term investors. On upside investors can expect targets of 173 and then 209 rupees.