MCX Copper: Bull trap?
CommodityOnline | Aug 28, 2013 06:58AM ET
MCX Copper prices are trading with a positive rally towards 550 levels. The commodity is yet to witness a sell off at higher prices. Hence, investors are anxious about futures trading. Is this a rally of trap?
MCX Copper price has been trading within the upward-sloping trend channel since last month forming higher tops and higher bottoms. The price has recently broken the previous top at 485 and channel resistances at Rs 500 and gave a sharp rally thereafter.
The 14-period Relative strength index (RSI) is currently pointing to overbought levels and holding well above the 50 marks indicates further bullish momentum. As long as the price sustains above short-term channel support line at Rs.525 level on a daily closing basis, Buying on dips is advisable.
The commodity should remain around 470-490 levels or else it may decline to 450 levels. It may witness strong support at 450 levels.
On charts, copper is showing bullish phenomenon. MACD and P-ROC (Rate of Change) is at positive territory. The commodity is trading at upper Bollinger levels.
Profit selling at 525 levels may witness slight downtrend in the near term. The overall trend remains bullish for MCX copper.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.