Copper in free fall mode

                                      10/7/2016, Sunday.

                        

Channel Pattern 

As indicated in attached daily copper chart, we can easily see that, copper price is moving in a donward moving channel since last 90 days. On 3 occasions ( a,c,e ) it touched resistance line. Price respected resistance line in this upward journey and came back to visit support line ( b & d ). In the third upmove it touched the resistance line and fall vertically. This point is shown in red rectangle.

There is another channel within the main channel, which is indicated by red lines. After returning from resistance line ( rectangle ), price breach support line of this blue colored channel ( circle ) around Rs 325 - 326 mark and as a result it got new steam for its down ward journey. 

                              Failure Of  Expanding triangle

Usually price fell after end of expanding triangle but here we can see the failure of this chart pattern. We can see this triangle colored in blue lines. Instead of going down price sparked upward and touched point e of resistance line.

                                        Moving Averages 

For the purpose of study of dma, 3 types of dma,s used here. (1) 5dma is shown in yellow line (2) 10 dma is shown in blue color line (3) 20 dma is shown in green color line. 5 dma line crossed 10 dma line in downward direction. As there are only 5 days or 5 candles in its downward journey, 10 dma line is yet to show new direction.

                                              Conclusion

Looking at channel structure and break of inner channel support line, we can hope that price will continue its journey towards main support line of big channel towards supportline placed around Rs 300 or 2.22 dolor mark. If we think only about main channel irrespective of inner blue colored channel, price is heading toward support line after visiting resistance line. Support line is placed around Rs 296 to 297. But there is support around Rs 300 or dolor 2.22 which is last time low, shown as point d. So keeping all this factors in mind I suggest to go short in copper @ cmp Rs 318 or 2.12 dolor for the targeted price of Rs 301 mcx or dolor 2.02 with the sl of Rs 321.60 mcx or dolor 2.15 around. Stop loss is placed @ the high price of last day candle. Hoping good profits from this trade, wish you best luck. Request you to use trailing sl method for safer profits. Thank you.

Natural Gas @ the edge of break up

                               NG @ the edge of breakout ?

Channel Pattern

As seen in the attached hourly Ng chart , price is moving in a upward moving channel since last 3 days. It touched 2.80 @ the resistance line of the channel and come down fast to kiss support line placed @ 2.70. Again price move upward and touch the resistance line placed @ 2.84 on second time. After touching resistance line price moved down sharply towards support line , which is placed around 2.73. After that price moves in consolidation phase but give respect to support line. After consolidation on hourly chart, price starts moving upward and now placed @ 2.8117, resistance line is placed around 2.88 -- 2.90.

                                           Moving Average 

On dma front , we can see that 10 dma ( blue ) crossed 20 dma ( green ) upwards and running upwards to cross 100 dma ( red ). Seeing the steam in which 10 dma is moving upward, it looks very much possible that it will cross 100 dma in very little time and 20 dma line will follow the suit.Watching channel line and dma structure we can expect that price is heading towards resistance line which is placed @ 2.88 to 2.90. 

                                              Symmetrical Triangle   

There is one important pattern of symmetrical triangle is devloping in this channel. It is powerful pattern. After completing the triangle price should breakout in the direction of prior trend & the trend is upward. In my prior analysis on NG i wrote only on this symmetrical triangle and after that price of NG made huge jump on upward and touch 3 dolor price but this time triangle is small compare to previous one but capable of breaking resistance line of the ongoing channel. Looking at the consolidation happened , price can break the resistance line and move upward towards 3 dolor resistance , as the thumb rule of three attempts.

Conclusion - one can go long on cmp Rs 189 around ( mcx ) for the tgt of 200 + with the sl of 186.

Update of analysis, 12/7/2016 

As shown in the attached chart, price moved upwards to the channel resistance line after breaking Symmetrical triangle. Price touch the resistance line @ the point of 2.87 dolor and turn back towards support line. This down move was very fast and with this force it broke the support line and went down.

Hope you booked your profits before it cross our long entry price downwards. We have enough time to book profits as seen in this hourly charts.

Nothing to saay more about NG because change of technicals demolish the previous chart pattern. Keep visiting to read ongoing patterns on varoius commodities.

Wish you profitable trading, thank you.