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Copper weekly report

Copper trading at 3 month lows on friday worries about stimulus tapering in US and chinese industrial data showed slowdown.

Copper closed a biggest weekly drop since august falling below a 3 month range this week. In LME copper fall arround 3 percent for the week and the stock reach the lowest since august 7. 

Copper technical BREAKOUT a bearish downside on daily future chart that is suggest more correction in near terms, selling pressure will continue next week.

Copper November contract inched 15.90 rupees lower to settle at 441.05 rupees this week. Copper bulls failed to maintain it above rising trend line support and metal settled well below 20 weeks SMA. 10 weeks SMA is still above 20 weeks SMA but now moving down side and very soon we may see a bearish cross on moving averages. 10 and 20 weeks SMA are still above 50 weeks SMA keeping intermediate bullish trend on the place. MACD is above zero line but has given a bearish cross under signal line indicating development of fresh bearish move. Stochastic below 30 producing sell signal and favors bearish environment in this commodity. Immediate support is now seen near 438 any sustained move below this level would bring 433-426 on cards. Resistance is now seen near 451 and then at 461 any sustained move above 461 would bring charm back in this commodity and then we may see an attempt towards 470 and more upside.

Trading range for the week is expected among the key support at 420 and resistance at 510.

Recommendation:

* Selling copper on jumps around 445-450 with stop loss above 461 for targeting 433-426 and more down side might be appropriate in short term.

* In alternative scenario selling can be taken below 438 with stop loss above 446 for targeting 433-424 and more down side.

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