The price of copper witnessed sharp correction from the highs of Rs 442.75 levels as on 19th Jul,
2011.
Since then, the price of Copper has been trading is a very narrow range of Rs 406 to Rs 397.50 levels over the past few sessions of trade.
But, the key observation to be made on the chart above is that the price pattern over the last couple of trading sessions have taken the shape of an Inverted Head & shoulder pattern.
This bullish pattern suggests that the prices are likely to break out of the narrow trading range and advance towards levels of Rs 410.25 / Rs 412 over the upcoming few session of trade.
The other technical factor that lends support to the bullish argument is that the MACD indicator is also trading in buy mode.
We recommend traders to buy between Rs 407--Rs 405.75 levels with a stop loss placed below
Rs 403.25 levels for upside targets of Rs 410.25 / Rs 412 levels.
MCX COPPER AUG. CONTRACT OPEN Rs 403.40 HIGH Rs 409.25 LOW Rs 401.90 CLOSE Rs 406.25
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