MCX COPPER TECHNICAL OUTLOOK

Date: 22 July 2010
MCX COPPER TECHNICAL OUTLOOK

TECHNICAL OVERVIEW:

MCX Copper prices have spiked up sharply in the last day closing up 2.57% from its previous day’s closing. Looking at the daily chart the counter has given bullish symmetrical triangular breakout by breaching a resistance of 317.00.We expect bull trend to follow in copper in the near term.

COPPER DAILY CHART:

Observations:

• After a long consolidation between 316 and 291 for last 6 weeks, the counter has finally breached the 317 resistance and closed above 318. Prices are in positive momentum as long as holds above 308.00

• The RSI is trading above 59 and has potential to move up further. The breakout should occur with an expansion in volume, especially on upside breakouts.

• Last but not the least; Directional Index too has given positive cross over in +DI and -DI, indicating the positive momentum in the prices.

POSITIONAL CALL (2 TO 3 MONTHS): BUY COPPER MCX 319.50-321.50 ZONE FOR THE TARGET 1 340.00 & TARGET2 355.00 WITH SL OF 308, CMP 321.50

Report By: Pradeep Karnani
Research Analyst

Mobile: 09966028055

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