LET THE MARKET TELL WHO WE ARE

Copper has been witnessing a long term down trend since August 2013 and closed at 333.50 yesterday. Provided is weekly chart in which correction from top of 512.65 took place in a channelized manner and this metal found support near 291 whereas 284.10 was the swing low posted in 2010. Most recently copper recovered from 298.05 which is 88.8% Fibonacci correction of bullish swing AB. Swing AB itself is 61.8% correction of bearish swing XA. Fibonacci relationship between these swings hints possibilities of a harmonic structure that can be either Bearish Gartley or Bearish Crab. In case if pattern unfolds as bearish Gartley then current rally is likely to be terminated from 358 zones after completing leg CD of this structure. Presence of descending trend line resistance near 358 also increases significance of this structure. In case if pattern unfolds as bearish Crab then an advance to complete leg ‘CD’, which is 161.8% extension of leg ‘XA’, can’t be ruled out. And this extended rall...

Copper on MCX is currently trading at 338 up by 2.33 percent from its previous close. It  had witnessed a nice recovery after placing a low of 291.50 in recent months and headed a high of 343.85 during that rally. After that a short term correction took place that lasted almost for 3 months and this correction was witnessed in a channelized manner. Now copper has climbed above the resistance line of this channel while Stochastic is staying above 40 and MACD in bullish territory. Bullish price action is also supported by positive reading on momentum indicators and this rally seems reliable. Prices are now attacking its flip resistance (Support Turned resistance) thus the areas of 338-339 will play crucial role in coming days and if copper finds its way above 339 than a strong rally towards 351-366 can’t be ruled out in near term. Areas of 325 are expected to remain crucial and further stability below these levels might invalidate bullish expectations. 

CAIRN on NSE settled at 162.10 and registered 7.96% gains for the day. Provided is weekly chart of CAIRN in which a strong down trend can be seen clearly. Recently, stock has changed its dynamics on weekly chart and a long term bottoming formation can be seen clearly on MACD indicator. Inverse head and shoulder pattern has emerged in this stock and this week stock has broken out above the Neckline of this bullish reversal pattern.  MACD is now testing its signal line near centre line and MACD histogram is confirming MACD divergence that suggests increasing bullish momentum. Stock has formed a base above 20 weeks EMA which is itself a bullish trigger on short term time frame. However, 20 weeks EMA is staying below 50 weeks EMA but price has climbed above 50 weeks EMA that suggests increasing bullish momentum in this stock.  Inverse head and shoulder bullish reversal has emerged after 16 months of strong down trend that increases the potential of this pattern. However, patte...