Copper Likely To Bearish View, Tgt At 432-430
CommodityOnline | Aug 05, 2014 08:10AM ET
As one can see from the adjacent chart below, MCX copper has formed a double top pattern on the one-hour chart. A negative divergence on the Relative Strength Index and the Moving Average Convergence Divergence indicates bearishness in the metal.
The current market price breaches the key moving averages which points to a weak outlook. The other technical observations are: the Momentum is valued at (1.15), the Relative Strength Index is valued at 48, the Positive Momentum Indicator is valued at 19 and the Negative Momentum Indicator is valued at (22). One can short at the current level or on rise till Rs438 for a downside target of Rs432-430. Trade above Rs441 will negate the bearish view.
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