TARGET: Rs 136
STOP LOSS: Rs 127
Lead is trading at three and a half-year low. It is one of the metals which have consistently underperformed. Medium-term outlook is bearish but in the short term, RSI_14 is showing lead in oversold territory. It has made positive divergence on the daily scale and we are expecting dead cat bounce from this region. Lead has also made ‘harami’ candlestick pattern after constant fall leading that we may see some halt in the breakdown. So buy lead with expected move till Rs 136 and stop loss of Rs 127 closing basis.
SELL: Crude oil below Rs 4,380
TARGET: Rs 4,280
STOP LOSS: Rs 4,450
Crude oil is at a critical support level. As we have written that we expect this week to be decisive for crude oil and we see crude oil price correcting below Rs 4,380. Since April 11, crude oil has bounced back from this level thrice and so we give high importance to this level. Only below Rs 4,380, can we see crude oil giving up its gain and testing lower levels till Rs 4,280. So, we would recommend short only below Rs 4,380 for expected downfall till Rs 4,280 and recommend stop loss of Rs 4,450 on closing basis.
Disclaimer: The analyst may have positions in any or all the commodities mentioned above.