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Will the Breakout in Copper Sustain For Coming days ?

Copper Price action trading higher after the news on Supply chain disruptions

Known as the stethoscope of Global economic measure, Dr. Copper saw good momentum on last few weeks. Prices rallied from 2.10 to 2.50 within a matter of five too six weeks. When we see from the perspective of Price action trading, (on weekly chart) Yearly low is at key level 2.00 (tested in the beginning of January 2016). Later Prices struck in tight range from March till November. Eventually broke the key resistance level at 2.30 in Mid November. Now the question is – what caused these moves? Will the recent breakout sustains or not?

It seems market is pricing on upcoming supply disruptions. Proposed government tax policy in Zambia may trigger some changes in International Copper prices. The government will most likely introduce a new tax with an aim to curb importing copper concentrates. This might result in short-term supply squeeze, if market participants respond to it. Watch out for this critical legislation from Zambian government. Also keep an eye on supply forces and lookout for pullback, in case of breakout continuation. If there is any counter moves or counter patterns in price action, we need to change the trading plan.

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About the Author:

Balaji is a Speculator, Investor and Trader (All in All!!!) and self published author. Trading in the Markets since decade, have seen more ups and downs along with institutional trader's lifestyle. He usually trades Nifty, Bank Nifty, Commodities, Futures cum Options around both Indian and global Markets. Balaji applies highly analytical and systematic Price Action strategies He blogs passionately about Trading strategies, Price Action Trading, Technical analysis, Macro events, Market setups, Financial and Economical topics. Apart from Trading and Blogging, Balaji also mentors aspiring Traders and Investors on becoming successful in highly competitive financial Markets.

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