MCX Feb Copper; after testing its 3 year low of 332 levels, copper prices started inching higher in a short covering mode. In this process it has developed a “inverse head & shoulder” pattern on daily/4 hours chart. Currently prices are hovering around its neck-line resistance of 357.70 levels and on a convincing close above the same will get the confirmation about the trend reversal and intact further uptrend for near-future. According to chart pattern the length between neck-line to head will be the immediate target on upside i.e. 383 levels. However, anysharp decline below the right shoulder of 346 levels will negate the pattern and drag the prices into negative territory.
Strategy: MCX Feb Copper:
The moving averages in MACD has given an upside crossover and the momentum indicators RSI & Heiken Ashi both are trading in a positive zone by supporting the view.
Strategy: MCX Feb Copper:
Buy 1 lot above 358 for the target of 383 with a stop loss 345…Cmp 355.75
Risk/return ratio: 1: >1.9
Risk: 13000 (on 1 lot)
Return: 25000 (on 1 lot)
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