Technical Outlook
On the technical front, various reasons which are supporting the increase in the prices of copper can be categories into 3 groups (based on the time duration). They are:
Monthly view:
1. Monthly charts have important trend lines as major SUPPORT and RESISTENCE.
2. MACD is showing a positive crossover in negative zone.
3. Copper had already recovered more than 50% since its drop from last year July to December, but this recovery can be seen up to 293 which is 61.8% of the retracement.
4. Copper is having strong support at 233 and strong resistance at 292 level.
Copper monthly chart
can be seen up to 293 which is 61.8% of the retracement.
5. Copper is having strong support at 233 and strong resistance at 292 level.
Weekly view:
1. Copper had made the cup and handle pattern (which is a continuation pattern) in weekly charts. This gives the Target of 350, if it takes the support of the neckline (which is placed at 243 level). However it might take almost 6 months to reach and this phase and it might happen in phases.
2. Retracement gives the TGT of 298 (61.8% retracement).
3. It is having a strong support around 237(38.2% of the retracement).200 days EMA is also placed at the same level. On the closer side, it is having a trend line support at 260.
Copper weekly chart
Daily charts:
1. RSI is in overbought zone running around 73. However history shows that copper had shows ample amount of bullishness even though it RSI has been in over bought zone. It had even touched the level of 90+.
2. MACD is running positive. It had positive crossover in positive zone around a week back.
3. 55 & 400 days EMA have positive crossover while 200 EMA is moving much below them and the prices
4. It is moving in channel having resistance around 280 and support at 245.
5. Retracement gives us the TGT of 291 and support at 262.
Copper daily chart
Seeing the above data and the economical developments, it can be predicted that copper can be in bullish trend for the next few months. Important supports and resistance are:
Copper support: 268 / 262 / 237
Copper resistence: 272 / 292 / 298
Have a Great Trading Day.
Vikas Gupta
Team Profit King Researcher
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