The price of Copper remained under tremendous selling pressure throughout the previous session of trade.
But, the key observation to be made is that the price of Copper appears to be forming a head and shoulder pattern on its daily charts.
The Head and shoulder price pattern is an extremely bearish price pattern and has negative implications on the future price movements of a Commodity/ stock/ Index.
The price of copper is also trading below its key moving averages and the momentum indicators are firmly placed in sell mode.
Traders can take 50% of the short positions on a break below the neckline support of Rs 400.80 levels and again on pullbacks to Rs 403—Rs 404.50 levels with a stop loss placed above Rs 406.75 levels and expect downside targets of Rs 397 / Rs 392.50 levels.
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