Metals slipped after the fed statement on Friday. Fed is eager to hike more interest rates in the month of September to control inflation. We expect metals to create more downside panic in days to come. Metal was unable to breach its resistance and slipped; Looks weak on the daily chart. After a steep fall in metals, we have seen a correction from the lower levels. After this correction, once again metals are ready to move downside.
Copper futures prices cannot breach their resistance level of $3.75 and slip again. Copper is now trading around $3.58 and has support at $3.55. A decisive close below $3.55 will take it to $3.25—$3.10 in days to come.
Copper has formed a rising wedge pattern on the daily chart and has given a downside breakout, as seen in the chart. Traders can sell Copper on the sharp upside rally with a stop loss above $3.75 on a closing basis. We will see downside panic till $3.25—$3.10.
On the MCX division, Copper has support at 660 and resistance at 675—688.
A decisive close below 660 will take Copper to 635—620 levels again in days to come. Don’t jump to buy at lower levels as the trend is weak.
Our negative view gets reversed on a close above 688 levels on a closing basis.