The MCX Copper contract was broadly ranged between the support at Rs 450 and resistance at Rs 470 in the past week. There is a double top pattern on the daily candle chart and the resistance at Rs 470 which has held well last week is the neckline of this pattern. Having said this, failure to rise above Rs 470 could keep the contract under pressure and can take it down to Rs 450 initially. An eventual break below Rs 450 can then drag the contract further lower to Rs 430 which is the target level of the double top pattern. On the other hand, an immediate decisive break above the resistance at Rs 470 will take the contract higher to Rs 500-510.
Crude Oil (Rs 6,637)
The MCX Crude Oil contract has come down sharply over the last few weeks from the high of Rs 7,784 recorded on August 28. However, the contract is nearing its significant trend line supports at Rs 6,400 and Rs 6,300 which can be tested in the coming week. An immediate fall below Rs 6,300 might not be very easy. As such the downside could be limited to Rs 6,300 and there are good chances for the contract to rebound from the Rs 6,400-6,300 support zone in the coming weeks which can take it back to Rs 7,000 levels.
If the contract falls below Rs 6,300, then the current downtrend can continue and the contract can target Rs 5,850 on the downside.
Natural Gas (Rs 231.4)
The MCX Natural Gas contract has been moving in a good uptrend channel over the last one year. Within this channel, the contract is currently sloping down from the resistance near Rs 260. Immediate resistance at Rs 240 which has held well last week. As such this short-term downtrend can continue and the contract can fall to Rs 210-200 in the coming weeks. A strong break above Rs 240 is required to avoid this fall. But seeing the price action over the last two weeks an immediate break above Rs 240 does not look likely. However, from Rs 210-200, the contract can begin a fresh leg of up move targeting Rs 260-270 on the upside.
Zinc (Rs 115.3)
The MCX Zinc contract has come off sharply from the high of Rs 136.9 over the last few weeks. Immediate support is at Rs 114 which needs to hold to avoid further fall. A bounce from the support at Rs 114 can take the contract higher to Rs 120 in the coming week. Zinc has important resistance at Rs 120 and a failure to rise further beyond this resistance would continue to keep the contract under pressure. On the other hand, if the contract falls below Rs 114 immediately, then the current downtrend would continue targeting the next significant support at Rs 110 .
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