The above weekly
wave chart indicates the bearish stance on lead for medium term.
In the
perspective of Elliot wave, the whole structure from the low of 72.55
(12-Jun-10) to current level is corrective triangle pattern which are labeled
as a-b-c-d-e. “Wave e of wave b”, has completed and major bearish leg on cards
towards 109 which is crucial rising trend line support level. If it breaches & sustains below 109, we may see further selling pressure towards 99 which is its 61.8%
extension level of Wave W and Wave X.
On the weekly chart, the RSI indicator has showed a negative crossover with its price, which is the sign of weakness.
Recommendation: Sell at CMP (121.35) or sell on rise for the target of 109 - 99 levels with the stop loss of 137 (Closing basis).
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