MUMBAI: As seen above in the daily price chart of the MCX Copper June contract, it was trading between the following range with a Triangle Pattern from the last couple of days. Yesterday we saw that prices breached that “Triangle pattern” coupled with the strong “Bearish candlestick” formation and traded below it which is basically an indication of a Bearish trend in Copper. Copper has been broadly declining mode since December 2013.
Indicator Analysis
On the oscillator front, the 14 day RSI is falling and currently its reading is at 42, and the MACD is also trading in negative zone which is also supportive for the bears.
Prices are also trading below its 5, 20, 50 and 100 Day EMA, which is also the indicating towards southward trend.
Key Levels
Resistance could be seen at the 414 levels and the next resistance is observed at the 420 level. The price can find support at the 396 level and below that strong support is seen at the 385 levels.
Looking at a bearish price formation coupled with oscillators indicating pessimism, we recommend selling MCX Copper June contract.
Positional Call :- Sell MCX Copper June between 406 - 408, SL - 421, Target - 387 (CMP - 406)
