copper technical analysis 19 to 23 May 2014
copper daily chart technical analysis
Mcx copper future on last trading session closed at 410.2 with loss. On daily chart, last move was strong sell signal and suggesting primary trend is resuming as rupee getting stronger. Copper had given reversal after touching its 3-month average, which is very bearish sign for short term. For next week, 412 and 418 are strong resistances on upside. 412 is 1-month average and 418 is 3-month average level. On downside, supports are now at 405 and then 398. Daily chart indicators are bearish and with fresh sell signal on chart.
Traders with stop loss above 418 keep short view on copper future and expect targets of 405 and then 398 in next week.
copper weekly chart technical analysis
Mcx copper future this week closed with flat loss. A fresh bearish candlestick pattern is formed on chart suggesting downtrend is resumed here. Copper is trading below major medium to long-term averages but with bullish indicator patterns. From medium to long-term view, 430 and 434 are strong resistances on upside. 430 is 2 years and 6 month average level and 434 is 12-month average level. On downside, 400 and 375 are strong support zones as well as targets if trend continues. As indicators are still bullish, short sellers must stay cautious and keep strict stop loss in place. In my personal view, keep contra view here and use 390-400 rupee zone for buying and accumulation for targets 430 to 434 in medium terms.