Technical Outlook & Trading Strategy:-
The price of Copper has been consolidating within a narrow range of Rs 429—Rs 438 levels after it witnessed a strong rally from the lows of Rs 399.70 as on 23rd June, 2011.
But, the key observation to be made is that the price action of copper within this consolidation is taking shape of a bullish pennant formation.
The Pennant price pattern is a continuation pattern and suggests the stock, has gained momentum for a fresh up move after a small consolidation.
A sustained break above the Rs 438 levels will lead to a successful completion of the pattern and one could see the price head towards upside targets of Rs 444.50 / Rs 448 levels.
We recommend traders to buy above Rs 438 levels with a stop loss of Rs 432.20 levels for upside targets mentioned above.
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