Copper Sell Below 333 On Closing basis, Resistance @ 347 - Tgt 320 and below
MCX Copper: Sell Below 332 Rs/kg (CMP 334) | Stop @ 344 | Target @ 320 — 305 — 292
MCX Copper Resistance seen at 347 level.
The MCX Copper April contract is quoting at Rs 334/Kg after crossing the resistance of 320 and tested the higher level of 344 recently. The above technical chart shows formation of A-B-C Pattern, where prices have retraced by 61.8% distance from Point A to Point B. In short term move it has completed a-b-c marked in red with upside move.
In the A-B-C pattern, Wave C retrace by 61.8% and if prices fails to cross the same resistance level of closing basis short pull back in prices can be expected. Copper started to fall from 368 (Point A) in September 2015 and tested the support level at 292 (Point B) in the beginning of January 2016, thereafter prices retraced by 61.8% of the fall from Point A to Point B. The red metal is facing resistance at 344 (Point C) and showing sign of reversal. Immediate support is seen at 142 and further trading below the same further fall is expected.
The difference between Point A and Point B comes to 76 points. Considering 50% of this difference from Point C, the downside target comes to 206. Thereafter, the next target could be 292, which is was the support taken at Point B. Further trading below 292 on weekly closing basis we may look at 268 level which is 100% expansion of the fall from Point C.
However, the trend could reverse if copper trades above the resistance level of 347 on closing basis. If Sustain above 347 then only prices may rise towards 355 — 365 levels.
The MCX Copper April contract is quoting at Rs 334/Kg after crossing the resistance of 320 and tested the higher level of 344 recently. The above technical chart shows formation of A-B-C Pattern, where prices have retraced by 61.8% distance from Point A to Point B. In short term move it has completed a-b-c marked in red with upside move.
In the A-B-C pattern, Wave C retrace by 61.8% and if prices fails to cross the same resistance level of closing basis short pull back in prices can be expected. Copper started to fall from 368 (Point A) in September 2015 and tested the support level at 292 (Point B) in the beginning of January 2016, thereafter prices retraced by 61.8% of the fall from Point A to Point B. The red metal is facing resistance at 344 (Point C) and showing sign of reversal. Immediate support is seen at 142 and further trading below the same further fall is expected.
The difference between Point A and Point B comes to 76 points. Considering 50% of this difference from Point C, the downside target comes to 206. Thereafter, the next target could be 292, which is was the support taken at Point B. Further trading below 292 on weekly closing basis we may look at 268 level which is 100% expansion of the fall from Point C.
However, the trend could reverse if copper trades above the resistance level of 347 on closing basis. If Sustain above 347 then only prices may rise towards 355 — 365 levels.
