Here in this blog, I am going to converse about copper and zinc.
The covid-19 outbreak in China hits the MCX segment adversely. Moreover, Russia & Ukraine wars and several sanctions deteriorate the economic health globally. But, recently, due to a relaxation in Covid-19 lockdowns, the market tried to become stable. Furthermore, the condition of stability does not last and another concern of recession arises globally.
Day-by-day hikes in US inflation rates and an increase in interest rates by FED created a panic in the market which is putting pressure on the prices of commodities.
As we are aware of the fact that last week, copper closed and traded in the red. Continuous economic indicators in June month heading the market and making it directionless for traders to predict.
Here is where the work of a Research Analyst comes into account for.
Copper Weekly chart
Above is the weekly line chart of Copper (June contract) which is forming a Rising Wedge pattern. Precisely, a rising wedge is a pattern that signifies a bearish trend thereby indicating a breakout of a downside trend.
Looking into the chart, we may clearly identify a difference of 120 points (660—787) between the two parallel lines.
Copper has already given a breakout below 755 levels and currently trading at 736 levels. Moreover, traders may find a selling opportunity as and when a sharp upside rally is seen.
Traders may sell copper between 750—760 levels thereby maintaining a strict stop loss above 800 levels.
We may see a downside target of 650—620 in the days ahead.
Zinc Weekly Chart
After a consolidation phase, zinc has given a trend line breakout. Above is the weekly chart of Zinc which clearly signifies a breakout below 315 levels and now trading at 310.20 levels.
Zinc ended with the last support at 308 levels. If zinc breaches the last support of 308 levels, then we may further experience a sharp downside panic on a closing basis.
We may experience a downside target till 288—276 levels.
Traders may sell zinc between 316—320 thereby maintaining a strict stop loss above 340 levels on a closing basis.
Be cautious traders at upper levels.
For more updates, stay tuned with us!!