MCX Lead September: Sell Below 114.5 | Stop @ 116.25 | Target @ 112.40 - 109
Risky Trader Sell CMP 115.55 | Stop @ 116.25 | Target 114.50 - 112.40 - 109
Risky Trader Sell CMP 115.55 | Stop @ 116.25 | Target 114.50 - 112.40 - 109
MCX Lead Outlook Weak; May Fall To 112.40
The lead futures contract traded on the Multi Commodity Exchange (MCX) has formed a Diamond Pattern. The pattern top is seen at 116.25 (Point C) and low at 114.15 (Point D). The Height of the Diamond comes to 2.1 considering the difference between these two points (116.25-114.15).
A breakdown is expected at 114.50 and lead may fall to 112.40 levels (114.50-2.1). If the contract continues to trade below 112.40 then prices will further decline to 109 from where the uptrend began, before forming the Diamond Pattern. The contract faces resistance at 122.15.
Diamond Pattern:
The diamond formation reversal pattern occurs rarely. However, when it does, it usually forms at market tops rather than at bottoms. The diamond starts off as a broadening formation and then consolidates, usually forming a symmetrical triangle. The combination of price patterns first broadens and then consolidates, giving the geometric shape for which the diamond is named.
The diamond formation reversal pattern occurs rarely. However, when it does, it usually forms at market tops rather than at bottoms. The diamond starts off as a broadening formation and then consolidates, usually forming a symmetrical triangle. The combination of price patterns first broadens and then consolidates, giving the geometric shape for which the diamond is named.
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