Copper In A Downtrend
CommodityOnline | Jun 10, 2014 05:30AM ET
MCX Copper June as seen in the weekly chart above has opened at 411.70 levels and as expected during this week prices made a high of 416.85 levels. We observed that prices could not able to sustain on higher levels and corrected back towards the weekly low of 396.30 levels. During this week prices have breached multi week’s lows and trading below it and finally closed 2.92% lower at 398.80 levels. Broadly from last couple of weeks prices have been trading between the support and resistance levels and this week prices have breached the support of 404 levels following with a “Big Bearish candlestick pattern” which is indication of bearish trend.
For the next week we expect Copper prices to find support in the range of 392 – 390 levels. Trading consistently below 390 levels would lead towards the strong support at 384 levels and then finally towards the major support at 378 levels.
Resistance is now observed in the range of 403 - 404 levels. Trading consistently above 404 levels would lead towards the strong resistance at 409 levels, and then finally towards the major resistance at 414 levels.
MCX / LME Copper Trading levels for the week
Trend: Down
S1 – 390 / $ 6,700 R1 – 403 / $ 6,950
S2 – 384 / $ 6,600 R2 – 409 / $ 7,060
Weekly Recommendation: Sell MCX Copper June between 402 – 404, SL- 409, Target – 390 / 388
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