What Declining Copper Price is telling us?

From recent high to current close, copper prices have declined nearly 14%.

Copper is one of the most used elements in various industries and its declining price indicates decreasing demand which in turn indicates the slowing economy.

Historically, slump in copper prices precedes stock market correction and with valuations being so high, it is wiser to book your profits and sit on a pile of cash and wait for a good dip when you will be able to buy the same stocks you are holding now at cheaper price. However, no one can guess when the actual meltdown is going to start. So keep an eagle eye on your chart.

As for as Indian market is concerned, it is expected to follow global cues as of now and you might see a moderate gain in indices today. However, when Zeta Stock Scanner starts showing you more red stocks than green on daily chart, it would be time to book your profits and make an early exit.

For today, Grasim, Trent, GMRInfra, BEL, Titan and of course Mazdock seem to be all set to gain some more points.

Happy Trading.