Copper, in its 6th attempt to break resistance

copper daily chart

Channel 

As seen in attached daily chart, copper is trying its 6th attempt to break Rs 140 resistance. These 6 points are shown by letters a, b, c, d, e & f. While doing this copper price break the channel resistance in little way. On the other side price respected support line on 2 occasions, i.e. x & y. If failed to break and sustain above 340 level, it should have to return support line again which is now placed below Rs 300. If it breaks resistance of Rs 340 and sustain, then new rally will start towards next resistance around Rs 355. 

Moving average

You can clearly see in the chart that 10 day moving avrage crossed 50 day moving average, it indicates short term bullishness in price.

Conclusion 

One should watch carefully the levels given in the chart & try to follow the trend. Never go against the trend but try to catch reversal. Below the channel resistance line, copper can turn towards support line. If sustained above resistance linewhich is placed around Rs 335, it can again try to break the major resistance of Rs 340 & if it go above that price then new big spike will be there which will take price towards Rs 355 level.

Reminder 

Wait for confirmation of down trend below resistance line to go short & wait for breaching and sustaining above 340 level to go long. Dont trade between channel resistance line and R 1. Thank you , wish you happy trade. Today, news is china weak import export figure.

Update 1 15/7/2016

Nothing has changed in last 2 days.Moving avrage of 20 days also turn up, showing bullishness in trend. Very confusing pattern, longs only above 340, shorts with strict sl.

Update 2 chart, 16/07/2016

Update 2 -- consolidation accumulation or distribution ? 

As edited in the chart, yesterday price try to go again to R 1 with a spike but failed & return back to Rs 334 mark. If you are thinking that price is unable to cross R 1 then it will turn bearish, be cautious, look @ moving averages. Now 20 dma is also showing bullishness with 10 dma & price successfully made a base between Rs 333 to 335.50. This is sign of consolidation accumulation & not of distribution. On the other hand as time is passing resistance line of the channel is coming down, as a result 334 mark is now above the resistance line of the channel. As a rule of polarity, now resistance line of the channel will work as minor support for the price. 

Strategy 

So we should change our mindset & wait for price crossing Rs 340 mark and sustain there, then we can take long positions for the tgt of 350 + . If price go below Rs 330 mark that will be good sign for shorters. Thank you, wish you happy trading. Keep visiting.