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MCX Copper: Triangle Pattern Breakout Or Macro Economic Data?

ByCommodityOnline
Published 08/05/2013, 07:08 AM
Updated 05/14/2017, 06:45 AM

Copper reached its highest price in more than a week as the dollar fell and after data showed slightly stronger than expected factory activity in big metals consumer China. Unemployment rate fell to 7.4 percent, its lowest in more than four years.

Above fundamental you may have read at end of the week to support Copper movement happened in last week. Technically, prices gave break out from the triangle pattern in the start of the week and moved higher in an impulsive way. This is the power of simple technical analysis which helps to take the positions before news arrives.

Below we have shown 60 mins chart of MCX Copper picked up from the commodity report – The Commodity waves STU published on daily basis.
MCX Copper
For Copper, in the previous week prices sustained above the strong support of 410, closed above previous day low consecutive for five trading session and made weekly high of 432 levels. This sharp move has not only breaks the crucial level of 425 on upside but also broke range bound movement of past one month.

As per wave perspective, prices have broke the symmetrical triangle pattern on upside and started the next leg on upside. Triangle pattern contained 5 waves, all waves are corrective in nature and consists 3 waves internally. Prices have been constantly protecting the previous day lows.

After triangle pattern breakout we have observed trending move in Copper after one month. This indicates that there is more steam left on upside in this commodity.

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