The base metals pack witnessed heavy selling pressure for the 2nd straight session of trade and they closed lower. The price of copper also fell on the back of strong volumes. An examination of the chart above, shows that the Rs 427.90 — Rs 427 zone had been acting as strong support for the price of copper on previous correction.
But the selling pressure witnessed during the previous sessions has taken the price of copper below this crucial support zone on a closing basis. This is a negative sign for the prices of copper for the near term to short term time frame and we believe that the price could now slip down further towards the Rs 421.75 / Rs 418 levels.
Some of the key technical factors that lends support to the bearish argument are that, the price has closed below its 200 day moving average and the MACD indicator has given a fresh sell signal as shown in the chart above.
We recommend traders to sell 50% at current levels and 50% on rallies to Rs 428.50—Rs 430 levels with a stop loss placed above Rs 431.30 levels for downside targets of Rs 421.75 / Rs 418 levels expected to be achieved over the upcoming 3 sessions of trade.
No comments:
Post a Comment