MCX Lead Consolidating in a triangle
The adjacent chart shows the price movement of MCX Lead continuous contract. It is forming a triangle pattern. In Tuesday’s trading session, MCX Lead found support at the lower end of the triangle and bounced back. Also, it has closed above the 20 DMA. It is likely to head higher towards the upper end of the triangle, which is currently pegged at 158. On the way down, 147 will act as a strong support. If it closes below 147, then it can drift lower towards 144. Traders should buy on dips as long as it doesn’t close below 147. The momentum indicator is in a negative mode.