A snapshot of daily technical chart of Lead, it suggests that all the major and minor support lines has been breached out and all the major supports have been cleared by bears successfully. Well it’s time to have party for those who have shorted the base metal at top. Well there is no doubt that bears made a fabulous counter attack and the way they are dominating the bears it seems like this process will continue till the 135 level at least.
A depth analysis also indicates that it has given us valid breakout of an intermediate term horizontal channel lines. As we can see that lead has entered in the mentioned consolidation phase on 22nd January 2019 and since then it was trading and sustaining between the ranges of 143 to 154 levels however, from daily to weekly point of view it has given us so many fabulous buying and selling opportunity but on recent Friday it has given us valid breakout of consolidation phase with strong bearish sentiments.
From the starting of March 2019 we are witnessing bearish sentiments in the lead and a gravestone doji candlestick on the top has given the further courage to short the lead on the top as it was previous swing’s high also i.e. 154 level which has created the hope for double top price pattern in our mind and since then it tumbled to 141.65 level on recent Friday.
By looking at the daily chart of lead we can see that lead is falling down by leaps and bounds and bears are controlling the game as per their own choice. Bears took the lead from 154 to 141.65 level which was a fabulous down fall in the month and further selloff is still awaited because it seems like bears are driving the car or controlling the game for the time being and they will decide the destination. Lead already breached its key support level and even USD/INR contract is also falling down which is also supporting the lead and providing strength to bears.
From technical prospective we can see that a ‘M’ shape in process of formation which will complete when it will test the 135 level. Based on chart and studies it looks like 135 level is unfinished target of bears. Presently pair is trading and sustaining below all the major and minor EMA lines. A big bearish marabuzo candlestick on the daily chart and a bearish engulfing candlestick followed by a bearish marabuzo candlestick on the weekly chart also suggest that further bearish sentiments are on the cards.
The 135 level is key support level followed by 133 level as major support level whereas 149 level is key resistance level followed by 152 level. A daily closing above 149 level will change the outlook from bearish to bullish, however there are very low chances that we may see this event. Trade idea:- Daily to weekly bias remains bearish on the lead and odds are in favor of bears. Traders and investors are advised to go for short at current 143-142 levels for the target of 135 and 133 levels with the strict stop loss of 149/150.