Last Updated : 10 October 2012 at 15:05 IST
AHMEDABAD(Commodity Online): May be yes! It is the time to sell lead. Lead prices on the LME have gained most in the base metals pack, garnering 14.6 percent month on month.
“In fact lead is the only commodity in base metals pack which is trading at levels higher than previous month highs.” said Ankush Kumar Jain, Manager-Research (metals-energy), Commodity Online.
“However, in today's session, LME Lead warehouse cancel warrant stock ratio declined from 41.52 to 37.56, which is clear indication of downside momentum for coming session.” he cautioned.
Technically on daily charts, MCX Lead for October delivery was having good support at Rs 118, which has been breached in today's session. This also confirms the downtrend.
“An advise to short sellers would be to short sell Lead Oct contract below Rs 118 with stop loss of Rs 119 for target near Rs 115 for the coming session of this week.” he added.
Rising demand from the battery industry had resulted in sharp rise in the prices of Lead. It touched a monthly average of $2,291 per ton on the LME.
According to International Lead and Zinc Study Group demand for lead is expected to increase by 4.8 percent to 10.78 million tons in 2012 even as market surplus is pegged at 49,000 tons during January to July 2012.
On the other hand, refined lead use of the world has risen to 6.114 million tons in the first seven months as compared to 5.965 million tons during the same period previous year.
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