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.
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