Copper on Friday touched its peak of its long term trend line at $2.717 on over 6% gains during Asian trading sessions which was followed by massive selloff due to profit taking and risk off trades during American session of trading where it saw cuts of above 8% from its morning highs resulting in a negative close of about 2%.
Point to notice here is even when its peak in negative territory , it failed to go below the strong technical level of $2.501 which it had broken on the upside a day earlier suggesting clearly the metal was not wanting to break on the down side even in such volatile market scenario where everything was under severe selling pressure.
Obviously the candle stick formed was bearish as the price retreated from very high levels.
Trading on the next day was expected to be on the down side which happened but case here was opposite where the metal rose from its day’s lows which broke the key technical level but to close in flat-negative zone way above the level forming a bullish candle firming the sentiment that it was not wanting to go into a bearish market again which it could have had it closed below the $2.501.
On the bullish front, it needs to close above the next resistance of $2.570 to continue the upside and in some time break the long term trend line to stay in a very powerful bull market of metals.
Today, Copper rose above the resistance of 2.570 during Asian trading session but yet again retreated from it as the European markets opened. Final movement of the day will happen when the American markets open later in the day either on the bullish or bearish side.
It is anticipated the metal will continue its uptrend as the markets globally are trading on sharps gains with commodities not seeing the selloff it did on Friday.
Stocks in Focus during Indian trading session would be Hindalco and Vedanta.