Lead also demonstrated the same price movements as shown by copper and zinc. The movement was such throughout this month that the demand and supply scenario for the metal have not been affected much in the last couple of days. In summers, the metal finds less usage as it finds less demand from lead acidic batteries. The LME warehouse stocks of the metal have also increased by more than 11,000 tonnes almost touching 87,000 tonnes which is a ten month high.
Trading platform that even a 5 year old can trade. Join now This was the demand side scenario which is not very bright where as the supply side concerns can provide some support to the prices. There were various production cuts and closures of mines due to huge losses faced by them on back of severe downfall of prices seen some months back. Lead saw a range breakout as market elevated itself towards a higher range of Rs86-76/kg at MCX during June.
This also negated the bearish head and shoulder pattern emerging on daily charts, indicating renewed optimism in the counter. Looking ahead, bulls need to watch out for Rs86-87/kg levels for renewed strength in Lead. Otherwise market is likely to remain clueless for July. On the downside, market has a strong support around Rs69-70/kg, wherein long build up is encouraged.
Courtesy: Religare Commodities Explore Commodity Online Mobile Services
