After a steep fall in the previous month MCX Lead Mini

prices have consolidated in a very narrow price range. One

could expect a steep rally on the breach of resistance at

112.50

.

Contract

CMP

Trade

Stop Loss

Target

: Lead Mini, May

: 110.40

: Buy above 112.50

: 108.90

: 118 – 118.60

Rationale of the call

•

MCX Lead Mini May contract has formed an inverse Head & Shoulder pattern on the daily chart, which is

one of the best indication that short term bottom could be in place.

•

•

Head & Shoulder consists of left shoulder (S), Head (H) and right shoulder (S).

Neckline of the pattern comes at Rs.111.90, break and sustenance above the same would give us

confirmation to go long.

•

It is advisable to buy on the breach of Rs.112.50 for the upside target of Rs.118.10 with SL below

Rs.108.90. (Kindly note, it is necessary to breach the neckline of this pattern to validate it as a confirmed

Head & Shoulder pattern.

Disclaimer