Time To Sell Copper?
| Jul 16, 2014 06:09AM ET
Copper (15.07.2014) moved higher in last few weeks and topped 7211 on lme.
Now copper is trading around 7120 area on LME and as we can see on charts , with a top (probably false) above the tradeline, copper trimmed its rally and is looking for some downside moves ahead. A number of doji, shooting star etc says that the trend is slowing down now. As we see on charts, the top placed was almost at 161.8% feb correction level and after that we have witness some negativity on indicators too.
On the fundamental side, not much news that would spur appreciation from the world economy. Continued global tension may reduce the industrial metal demand while inventory are still on higher side.
Based on above, we prefer to sell copper for possible targets around 6980 and then 6840 in the coming weeks, while a day close above 7240 will force us to reanalyze the charts.
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