Copper can test Rs 432.30: Sharekhan

Sharekhan has come out with its report on Copper. According to the research firm, the metal is expected to test its swing high of Rs 432.30.

Bullish developments in copper

MCX Copper has done a five-wave decline in its recent fall from Rs 454.65. It has taken support near a level at which it had taken support multiple times in the recent past and has entered a pullback mode. As per Elliott wave theory, a five-wave decline is usually followed by a three-wave pullback. Thus, unless the low of Rs 411.85 is broken, the red metal can go for a descent pullback.

The daily momentum indicator is showing a positive divergence, which adds to the bullish probability. Recently, copper has formed a bullish triangle. Thus, this is an opportunity to enter into fresh long position. On the upside, the key resistances are the 20-daily moving average (Rs 422) and the 40-daily exponential moving average (Rs 426). Overall, copper can test its swing high, ie Rs 432.30.

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