Copper climbed over the past week on signs of tightening supply and rising demand—copper benefited from expectations of stronger Chinese industrial demand and a softer U.S. dollar. The result: traders are increasingly pricing in constrained supply as demand looks steady or improving.
MCX Copper September contract has inclined marginally over the course of the week, surged by +1.81% and managed to settle on a bullish note at 913.90. Price has continued to trade over its key moving averages i.e. 50, 100 and 200-DEMA levels placed at 891.15, 882.10 and 866.25 respectively. Daily SAR is placed at 896.25. Looking at Daily chart, we can observe a Bearish hammer candle at the peak of the trend and it may early signs for a correction towards the support levels. The momentum indicator RSI is currently trailing around 65 on Daily as well as Weekly chart. On MACD, we can observe a convergence above Zero-line along side declining positive histograms. Key resistance would be 919.80 which high of prev. week and breakout of this level will continue upside trend in Copper price. Open Interest (OI) has declined marginally to 5590 lots in recent peak.
We are expecting Moderately Bullish trend in Copper price in upcoming sessions and expecting correction towards support levels in next week. If price holds over these levels, it may provide a Buy-on-dips opportunity for Copper price.
Support 2 | Support 1 | CMP | Resistance 1 | Resistance 2 |
---|---|---|---|---|
879.45 | 887.55 | 897.65 | 909.55 | 922.20 |
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Prediction given by Technical Research Team - Choice.