MCX Lead bounces from recent lows

19 June 2008 09:50:32

MCX Lead trades higher and volatile following LME, closed near 80.60 after registering days high near 83.45, market was supportive due to heavy short covering in international markets. Intra day low registered at 80.05

There's only limited scope for a further downward correction in LME lead, the expected market surplus for '08 has already been adequately priced-in, which means the market can shrug off stock rises.

LME stocks are at their highest level since August '06. LME lead trades at $1,940 a metric ton, +8% from Tuesday's low.

Lead inventories at LME, increased by 1900 MT to 96775 MT.


MCX Lead June -Technical outlook:

The daily stochastics have crossed over up which is a bullish indication. The prices closed below short term and medium term EMA, which supports bears. MACD is heading downwards in positive region, showing decrease in bullish momentum.

Technical have turned neutral to bullish and market is expected to remain positive above 82.7 levels. If sustain above this level can see a rally towards 84.8 and 86.1, If market sustains below 81.4 can see a further fall towards 79.3 and 78.0

Recommendations –MCX Lead June: Buy at 80.00 Target 81.50 and 82.30 SL 79.20

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