MCX LEAD TIPS 01 JUN 2012

LEAD ERASED EARLIER SESSION GAINS AMID SHORT SELLING AT MCX

DATE: 01/06/2012       

                Battery material Lead for delivery in May 2012 erased earlier session gains and gain fell down to its previous levels at R 108.35 per kg, down 0.2% or R 0.25 and tested an intraday high of R 108.95 per kg and low of R 107.6 per kg. Short selling with 53% rise in its open interest to 2308 lots coupled with the gloomy global economic scenario dragged down the metal. The contract traded below 9-day EMA and RSI stood at 41.6.

At LME, Lead rose by 0.6% at $1940 per tonne on Thursday as the metal which has touched 8-month lows a day earlier prompted the metal to recover few losses shrugging off the bleak global economic scenario in the financial markets. Also, the Lead battery production in China also restricted the further fall in the metal.

MCX Lead is likely to find support at R 107.6 per kg and R 107.3 per kg and resistance at R 108.9 per kg and R 109.3 per kg on Friday, 1st June.

                                                                                  

POWERED BY: COMMODITY INSIGHTS

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