Copper usually trades with high volatility so at times, it becomes difficult to capture its swings. So applying the momentum indicators like ROC RSI helps to gauge the support and resistance zone.
Below is the daily chart of MCX Copper with detail analysis using ROC indicator combined with Elliot Wave theory which was published in our monthly research report ““The Financial Waves Monthly Update”
MCX Copper Daily chart: (Published as on 9th October, 2018)
(Below is the gist of research from our monthly research report)
In the current year of 2018 Copper has managed to hold above its low made near 400 and since then it is moving in overlapping fashion from last few months. Let us understand the medium to long term structure of this commodity.
Elliott wave perspective: As per the daily chart, minor degree wave iv of Ending diagonal pattern is competed and wave v is ongoing. As per the minute degree counts wave v is forming Complex correction pattern and wave a is completed on the upside near 470 levels and wave b on the downside is ongoing. Dips towards ………. can be used as a buying opportunity for expecting a move towards ……
ROC Indicator: We have applied the Rate of Change Indicator on the daily chart. The ROC Indicator is a momentum or velocity indicator as it measures the strength of price momentum by the rate of change. This indicator can be used for trend identification as well to identify the overbought and oversold conditions. Here we can see that the ROC indicator has an important support near -10 from where we have seen prices witnessing a reversal on the upside. The important resistance for this indicator has now shifted to 10 from where we have recently seen prices move downwards.
In a nutshell, Copper trend will remain positive and dips can be used as buying opportunity eventually expecting a move towards ………… Decisive break below …………. will indicate a major degree top in the commodity space. So keep an eye on Copper which will provide the leading trend for base metal commodities.
The above research clearly shows how well these indicators work. To know whether Nifty has formed its low or on verge of reversal, also to know where the money is flowing subscribe to our Monthly report- Click here
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