Copper November contract inched 5.65 rupees down to settle at 415. On the failure of 420 copper has confirmed a bearish reversal and has headed a low of 412.75 during this swing. Stochastic is staying negatively biased. MACD has given a bearish cross near zero line and now falling below that same. Metal is resuming its bearish direction after a short term consolidation makes it an ideal bearish pattern. Our outlook remains bearish on this metal until it settles back above 420 and it has the potential to hit 403-396 during this decline. Intraday support would be at 412 failure of that level would bring 409-403 on cards. Resistance is now seen near 420 any sustained move above that level would bring 424-427 for the day.
Trading range for the day is expected among the key support at 412.5 and resistance at 433.
Â· Today again selling copper on jumps around 427-29 with stop loss above 433 for targeting 420-417 and more down side might be appropriate.
Â· In alternative scenario selling below 412.50 with stop loss above 416 for targeting 408-404 and more down side might be appropriate in short term.
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