MCX Copper: Have Prices Completed Correction On Upside?
CommodityOnline | Jun 19, 2013 04:23AM ET
Base metals have shown a smart bounce after the fall on April 15, 2013. Copper is one of the commodities from base metal which has moved higher from the low of 365 and tested the crucial levels.
In commodities we have generally observed sharp correction on upside to digest the previous down move. Here, we can see the same in the MCX Copper daily chart below, which was picked up from the commodity report- “The Commodity Waves”.
Looking at the sharp bounce in the last 2 months, many market participants might have turned from negative to positive. However, technical analysis which will present the clear picture and caution not to create long positions, as prices are moving near the important levels.
Waves Analysis: As shown on 60 mins chart, prices had done nothing but consolidated sideways and hovered near upper end of the red channel in the previous trading session. Prices closed within the falling channel, indicating bearishness.
As per wave theory, prices are moving perfectly in the downward sloping channel and structure is overlapping. Hence, wave counts are tricky and we need more price of action for a clearer picture.
Copper prices are again approaching important levels on the upside, which can mark the turning point at 420 levels.
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