Updates on Base Metals

Base metals (Copper , Lead , Nickel , Zinc) are in a bull run from past 2 months. They have reached important resistance levels and now it is make or break situation. In today's post I have explained my observations. Please note that these are observation but not trading calls.

Copper daily chart

 Copper is facing stiff resistance at Rs.453.50 and it has completed 78.6% retracement. It need to close above this resistance for at least one trading session to continue uptrend. At Rs.453.50 RSI is not overbought so there could be possibility of breakout. Medium term reversal of the trend is below Rs.440.

Lead

Lead has been forming higher tops and higher bottom formation from past few weeks. Now it has reached an important trend line resistance at Rs.131.50 and it has completed 161.8% retracement from the fall of  131 to 107. As per My System it has started downtrend and close above Rs.130.50 will be the reversal.

Nickel

Nickel is trading within a  range that is between 930-977. It is advisable to wait for a sustainable breakout before entering into a positional trade.

Zinc

Zinc was trading between 111-114 and on 02/01/2013 it made a breakout. But this breakout was not sustained and now it has once again started trading between the narrow range. RSI is showing bearish divergence and we can expect a sustainable downtrend sooner or later. We have initiated short in Zinc at Rs.112.90.

Nifty medium term trend

Trend	UP
Initiation Date	29-11-12
Initiated at	5825
High since change	6020
Reversal if closes below	5800

 

Thought for the day

 

Do not act as if you were going to live ten thousand years. Death hangs over you. While you live, while it is in your power, be good. - Marcus Aurelius