Lead bearish harami candlestick pattern avoid long 07.08.2014Back

Lead August contract on MCX settled at 137.50 up by 0.90 rupees. Lead was influenced by bearish harami candlestick pattern that has appeared on Tuesday. Today price objective for bulls would be 138.30 and then at 140.80. Any sustained move above 138.30 would bring retest to 139-140 zones whereas key resistance would remain at 141. Support is now seen near 135 and then at 134 any sustained move below 134 would bring more weakness and then we will see a decline towards 132 and more down side.

Trading range for the day is expected among the key support at 134 and resistance at 138.30.

Recommendation:

· Today again buying lead around 136.50-136 with stop loss below 134 for targeting 138-140 and more upside.

· In alternative scenario buying above 138.30 with stop loss below 137 for targeting 139-140-141 and more upside might be appropriate.

· Selling can be taken below 134 with stop loss above 135 for targeting 133-132 and more down side might be appropriate.