Copper Aug in down trend, selling recommendation
CommodityOnline | Aug 11, 2014 07:11AM ET
Resistance is now observed in the range of 435 - 437 levels. Trading consistently above 437 levels would lead towards the strong resistance at 442 levels, and then finally towards the major resistance at 450 levels.
MCX Copper August as seen in the weekly chart above has opened at 434.70 levels and in the starting of the week price have made a high of 439.40 levels but could not able to sustain on resistance zone of 439 - 442 and corrected sharply towards the weekly low of 429.10 levels. During this week prices have tested the previous high of 439.40 levels but could not able to breach the levels and corrected these levels and made a “Double Top” formation which is supportive for the down trend. In this week price are able to close below the previous week’s closing of 435.25 levels and finally closed 1.23% lower at 429.90 levels. Technically, as per the candlestick pattern prices have formed “Bearish candlestick pattern with Double Top” indicating weakness.
For the next week we expect Copper prices to find support in the range of 424 – 422 levels. Trading consistently below 422 levels would lead towards the strong support at 419 levels and then finally towards the major support at 414 levels.
Resistance is now observed in the range of 435 - 437 levels. Trading consistently above 437 levels would lead towards the strong resistance at 442 levels, and then finally towards the major resistance at 450 levels.
MCX / LME Copper Trading levels for the week
Trend: Down
S1 – 424 / $ 6,950 R1 – 437 / $ 7,170
S2 – 419 / $ 6,860 R2 – 442 / $ 7,250
Weekly Recommendation: Sell MCX Copper August between 435 – 437, SL- 442, Target – 424 / 420
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