Last Updated : 10 October 2012 at 15:05 IST
Is it the right time to sell your MCX Lead?
Source :Commodity Online Research
Author :Rakesh Neelakandan
In today's session, LME Lead warehouse cancel warrant stock ratio declined from 41.52 to 37.56, which is clear indication of downside momentum for coming session. Technically on daily charts, MCX Lead for October delivery was having good support at Rs 118, which has been breached in today's session. This also confirms the downtrend.
- Base metals, Oil may trade higher on US data; Gold, Silver to be negative
- Spot gold prices declined around 0.5 percent today on the back of upbeat global markets which led to fall in safe haven appeal for the commodity. Further, strength in the US Dollar Index (DX) added downside pressure on prices.
- read more
Consumer price inflation in the U.S. rose for the first time in three months in May, while prices..
By Col. Ajay
As per financial astrology, transit OD Sun in Saturn house is ..
By Rakesh Neelakandan
AHMEDABAD(Commodity Online): May be yes! It is the time to sell lead. Lead prices on the LME have gained most in the base metals pack, garnering 14.6 percent month on month.
“In fact lead is the only commodity in base metals pack which is trading at levels higher than previous month highs.” said Ankush Kumar Jain, Manager-Research (metals-energy), Commodity Online.
“However, in today's session, LME Lead warehouse cancel warrant stock ratio declined from 41.52 to 37.56, which is clear indication of downside momentum for coming session.” he cautioned.
Technically on daily charts, MCX Lead for October delivery was having good support at Rs 118, which has been breached in today's session. This also confirms the downtrend.
“An advise to short sellers would be to short sell Lead Oct contract below Rs 118 with stop loss of Rs 119 for target near Rs 115 for the coming session of this week.” he added.
Rising demand from the battery industry had resulted in sharp rise in the prices of Lead. It touched a monthly average of $2,291 per ton on the LME.
According to International Lead and Zinc Study Group demand for lead is expected to increase by 4.8 percent to 10.78 million tons in 2012 even as market surplus is pegged at 49,000 tons during January to July 2012.
On the other hand, refined lead use of the world has risen to 6.114 million tons in the first seven months as compared to 5.965 million tons during the same period previous year.
- MCX Silver sideways to bullish; resistance 44200
- MCX Gold sideways to bullish; resistances 28150, 28300
- MCX Natural Gas positive; resistances 231, 234
- MCX Copper bearish; support 407 and 403
- Attention Commodity Investors: Seven key data releases to watch out for the day
- NCDEX Jeera range-bound at 13000-13300; Coriander negative