The analysis of the daily chart of MCX Lead reveals bullish developments. The base metal is forming a bullish price pattern called inverted head and shoulders pattern. The rise from 72.55 to 84.85 was a leading diagonal, whose 61.8% retracement has already been achieved. The daily MACD is in sync with the bullish formation. Near the equilibrium line, the momentum indicator has taken support at the nine-period moving average and is set for a new cycle up. Once Lead breaks out from the bullish pattern, the conservative head and shoulders pattern’s target will be 90. However, to reach the target Lead will have to overcome the hurdle of 21 daily exponential moving average (DEMA; 81.5) and 50DEMA (83). In case the right shoulder’s low i.e. 77 is broken, the reversal of the view can be assumed.
The analysis of MCX Nickel’s daily chart shows that the move from 823.6 to 952 was a five-wave advance. As per Elliott wave principle, a five-wave advance is followed by a three-wave correction and a subsequent five-wave advance. Nickel has recently formed a three-wave correction that has retraced 50% of the five-wave advance. In terms of price pattern, the correction has taken the form of a bullish flag. The daily MACD is trading with a positive bias. Hence the short-term target is the high of 952. The key support is at 61.8% ie 872 whereas the resistance is at 919 ie 21 daily exponential moving average (DEMA).
