Copper (19.05.2015) finally providing some directional momentum after spending more than 3 weeks in range.
Now copper is trading around $2.8626 & as we can see on charts , after spending more than 10 trading session , finally copper providing a downside breakout with aggressive volume. The reversal coming in copper is from 61.8% fibonacci retracement level as well as very close to the top line of long descending channel . Below $2.8398 mark we may witness more weakness in prices.
On fundamental side , upcoming FOMC meeting on Wednesday could provide hint for a rate increase & thus may support dollar price while hurt the base metal sector. China still not performing well in respect to economic data.
Based on above studies, we prefer to stay on sell for possible levels around $2.80 followed by 2.7050 in coming trading session.
Note – Above technical analysis is not a buy/ sell recommendation. Email us at [email protected]
MCX levels -> S2(393) S1(401.80) cmp(407) R1(409.70) R2(416.50)