The copper continuous futures contract on the Multi Commodity Exchange of India (MCX) has been on a long-term uptrend since it took support at ₹335/kg in March 2020.
The contract has been forming higher peaks and troughs. In July 2020, the contract had emphatically breached a significant long-term resistance at ₹460 and continued to trend upwards. Medium- and short-term trends are up for the contract.
After encountering a key hurdle at ₹630 in early January this year, the contract witnessed a corrective decline that took support at ₹558 in the past week.
Subsequently, the contract resumed the uptrend and surpassed its 21- and 50-day moving average recently. It trades well above these moving averages which add strength to the up-move.
A break above the immediate resistance level of ₹630 can take the contract higher to ₹640 and then to ₹650 in the coming weeks.
A decisive fall below the immediate support level of ₹600 can pull the contract down to ₹585 and then to ₹575. Next key support is at ₹550.
Traders can buy on dips with a fixed stop-loss at ₹610.