The adjacent chart shows the price movement of MCX Lead continuous contract. It saw a sharp decline from 147, ie the upper end of the downward sloping channel. It is currently witnessing a pullback. The gap zone of 143.25-145.60 is likely to act as a strong resistance in the near term. Any rise towards the gap zone should be seen as a selling opportunity as long as it is trading below 147. On the way down, it is likely to drift lower towards 138.40-136.30 once the pull-back is over. The momentum indicator has turned positive.
