Lead futures (January contract) on the Multi Commodity Exchange (MCX) has been charting a horizontal trend for the past three weeks. It has been fluctuating within ₹182.50 and ₹183.50.

Before getting into the consolidation phase, lead futures’ price dropped. However, the bears have lost traction, which has led to the sideways crawl.

Notably, there is a strong support band between ₹180 and ₹182. We expect lead futures to rebound on the back of this support region.

The potential upswing from the current level can take lead futures to ₹186. But in case the contract falls below ₹180, we might see another leg of downtrend, possibly to ₹172.

Trade strategy

We recommended buying lead futures at ₹182 last week. Hold this trade. Add longs if the price dips to ₹180. Maintain stop-loss at ₹178. Book profits at ₹185.

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