Sharekhan has come out with its report on Copper.
According to the research firm, the metal is expected to test its swing
high of Rs 432.30
MCX Copper has done a five-wave decline in its recent fall from Rs 454.65. It has taken support near a level at which it had taken support multiple times in the recent past and has entered a pullback mode. As per Elliott wave theory, a five-wave decline is usually followed by a three-wave pullback. Thus, unless the low of Rs 411.85 is broken, the red metal can go for a descent pullback.
The daily momentum indicator is showing a positive divergence, which adds to the bullish probability. Recently, copper has formed a bullish triangle. Thus, this is an opportunity to enter into fresh long position. On the upside, the key resistances are the 20-daily moving average (Rs 422) and the 40-daily exponential moving average (Rs 426). Overall, copper can test its swing high, ie Rs 432.30.
MCX Copper has done a five-wave decline in its recent fall from Rs 454.65. It has taken support near a level at which it had taken support multiple times in the recent past and has entered a pullback mode. As per Elliott wave theory, a five-wave decline is usually followed by a three-wave pullback. Thus, unless the low of Rs 411.85 is broken, the red metal can go for a descent pullback.
The daily momentum indicator is showing a positive divergence, which adds to the bullish probability. Recently, copper has formed a bullish triangle. Thus, this is an opportunity to enter into fresh long position. On the upside, the key resistances are the 20-daily moving average (Rs 422) and the 40-daily exponential moving average (Rs 426). Overall, copper can test its swing high, ie Rs 432.30.
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