Sunday, April 18, 2010

Metal Focus: Copper, STER, SAIL, JSW

In the following post discuss charts with focus on metals.

Firstly, the major metal chart:
1. Copper:
Copper is making divergence of chart. It would be hasty to call a top on copper, but a short tern rising trendline (1) is been broken.  However, line (2) is a major support line. Sub 340, major bearishness shall creep in the commodity. As of now, i see, copper making a topping structure. I am not able to fix up wave count, but would advise caution over longs in copper.

Follwing is EOD chart of Copper:

Coming down to metal stocks:

The following stocks are focussed on:
1. Sterlite
3. JSW Steel

Sterlite (CMP 837)
The stocks seems to have completed wave 2 upside and is poised for downside of wave 3 been in the range of Rs. 560.

Have posted comments on chart. For any short, i would consider a stop loss of 871. But, until new high is made on Sterlite, i would have a bearish outlook on Sterlite.

Plus, with copper making or been in a topping process, the stock is poised for major downside.

2. SAIL:

Following chart of SAIL is pretty self explanatory. I have posted my commnets.

On EOD basis the stock is bearish. On intraday basis, the stock can give bit of upside.

EOD Bearish target: 150 Current price 228
Intraday short of bull case: target 239
Bear case, target 214

Refer chart for comments:


SAIL Intrday 60 min chart:

JSW Steel (cmp: 1288)
JSW Steel is a gravity defying stock. i would say there is a major rising wedge on stock.
Breaking FW(2) line wil be bearish for the stock with Price target in range of Rs. 600. I would not say it will break in this week or not. But, if FW (2) breaks, then targets of Rs. 600 are possible.

JSW Weekly chart:

Disclaimer: The above is my analysis of stocks and not any recommendation. These are my studies and based on which i take my own trading decisions, Nothing above should be construed as trading advice.
Use your own stoploss, protect ur capital else u r screwed.

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