Stealth Bear trend in Lead - Neo Wave, Elliott Wave

Lead in last four trading sessions witnessed a free fall which has retraced in faster time. Prices are moving in a lower high and lower low which is a first indication that the trend is in a bear phase. Secondly it is precisely moving in a declining red channel. Lead, recently reversed from the resistance of the red channel and can possibly form another pattern. 

As per Neo wave, from the fall of 2013 prices were moving in a bow and tie diametric, which has seven waves in it (a-b-c-d-e-f-g). The last leg i.e. wave g completed at 107 in the month of August last year. Then it formed a 3 wave structure which is complex in nature and has possibly ended wave x at 126 in the month of February 2016. The current fall will be wave a of another pattern which will unfold over the time.

In short, prices can move down steeply near till 105 levels or even below that. A close watch is essential for this metal to understand the pattern structure.

Lead Daily chart 1st month contract



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