Tuesday, March 20, 2012

MCX LEAD TIPS


LEAD EDGED DOWN ON SHORT SELLING AT MCX

Date: 20/3/2012

Battery material Lead for delivery in March 2012 slid by 0.2% or R 0.25 at R 105.35 per kg on Monday, 19th March and tested an intraday high at R 106.2 per kg and low at R 105 per kg. After a choppy trading during last week, Lead edged down with a doji which is just below the 9-day EMA and its RSI stood at 43.5. Short selling also led the metal to stay at its low levels with 9% rise in its open interest to 7046 lots and volume traded stood at 18,198 lots compared to 20,848 lots traded last day.
Huge depreciation in Rupee also favored metal to end with modest gains. At LME, Lead slumped near to its 2-week lows by 1.4% at $2101 per tonne on Monday. The steady US housing market index weighed down the sentiment but eased concerns over Greece led the metal to curb huge losses.
Lead is likely to find support at R 103.4 per kg and R 104.3 and resistance at R 106.4 per kg and R 107.5 per kg on Tuesday, 20th March.
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