Copper is now close to ending a 5 wave rise from the June low. So a correction could quickly set in. The RSI at 84.40 on the daily chart is a high reading. 3.02$ is the first support on the say down.
Copper MCX prices are at the fag end of wave v of 3 and overbought. 3=1 is much higher but given the readings we need to be open to a unexpected price reaction. The MCX chart shows the upper end of the channel at 457 and lower end support near 433 and 20dma at 426. The most recent swing low is at 442, so a move below 442 could be the first sign of weakness.
Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd