Lead Mcx

IndiaCharts: Note that all Base metals traded on the MCX have now been marked as, for delivery contracts. Buyers can ask for delivery if the contract is not closed before expiration. The direct impact of this on price is that, the price of the contract has gone up by the extent that the market thinks is the landed cost, or cost of delivery. So this month was Leads turn to enter this mode and the contract started the month higher by a gap. The chart below shows no such gap as I manually adjusted the historical data to remove the gap. Else the chart would be wrong in terms of waves and trend analysis. It is like not adjusting for a bonus/split that is permanent to future prices. Ideally the vendor should do it but they do not. Many also do not adjust volume data along with price when there are splits or when contract sizes change. When Nifty contract size goes from 100 to 75 or 50 the volume represented in contracts should adjust for the value change. Same for stocks where the contract size was changed to make it bigger and closer to 8 lakh value.

Anyway on this chart Lead rallied to the 40dema and above but now is failing. Daily momentum has not reversed yet but the close below the average is the first sign of weakness and that wave C maybe starting. We are in wave Y = A-B-C, where A and B maybe complete. C=A from the recent high goes to near 125