Copper : Trendline crucial
Copper has been trading in a downward sloping channel and has reached the upper end of the channel. It is facing resistance at the 40-day moving average (DMA), ie at Rs420 and also from the upper trendline. If the trendline is broken on the upside and a closing above the trendlineis attained, then the metal can be expected to trade higher till the level of Rs428 which is the upper Bollinger Band. A daily negative close below the trendline will take the metal down to the lower end of the channel, ie to near Rs400 levels, which is also the lower Bollinger Band.