Global commodities are taking the blood bath as Bloomberg #Commodity Index is down 8%(approx) since the mid of February 2017. So Metals and metals related stocks are taking a hit in the past few trading weeks. Copper Price often signals the strength of the global economy. Copper prices are currently trading around the pschological reference level 2.5$ and all momentum indicators are currently in a negative mode across daily, weekly and monthly timeframe.
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.
Gold bounce sharply as expected & broken the $1172-1182 resistance area turned into support now. After a sharp rise, profit booking is always been a normal thing. We expect to retest the support zone before making another upside move.
Gold consolidating after sharp fall & trying to retest the broken support level turned into resistance. WE may witness more weakness as far as $1182 area remains as EOD resistance.
Now copper is trading around $3.0693 & as we can see on charts, its reaching to the lower tradeline current descending channel. However the momentum is very strong & it may break the channel , still few more indicators providing best opportunity for a shot covering at these levels.
Now copper is trading around 6913 of lme & as we can see on charts, copper provided a false breakout below the lower tradeline of the ascending channel.However it was able to bounce in over night electrinic trading.
Now copper is trading around 7120 area on lme & as we can see on charts , with a top (probably false) above the tradeline copper trimmed its rally & looking for some downside move ahead. A number of doji, shooting star etc says that trend is slowing down now.As we see on charts the top placed was almost at 161.8% feb correction level & after that we have witness some negativity on indicators too.
Now copper is trading around $3.2250 & as we can see on charts , copper is again taking support from long ascending trendline from where it bounced 3 times earlier. The current support area have a combination of 78.6% feb correction as well as parallel support zone just on the trendline.
Now copper is trading around $3.2928 & as we can see on chart, copper facing a resistance at topline of current descending channel which is also represent the 78.6% feb correction level of last upside mo
COPPER COMEX (27-March-2013) recently on weekly charts gave a breakdown of a classical symmetrical Triangle Pattern and Next Support is @3.20 $ Selling Opportunity Lies at current Levels. Major Profit Booking has been Seen in Commodities including Precious Metals and Base Metals.
2011 YTD relative perfomance for the world trade-able assets( World Indices, Commodities, Forex, Bonds ) are shown.
The MCX Copper is expected to shine bright. As per our Ichimoku Cloud Trading System, MCX copper is still in buy mode with support coming around Rs.425.