Copper prices are under pressure and have been falling over the last three weeks. The Copper Futures contract on the Multi Commodity Exchange (MCX) had tumbled about 10 per cent in the last three weeks. The contract had touched a low of ₹777 per kg last week. However, it has got a breather at the opening trades today. The contract has bounced and is currently trading at ₹791 per kg.
Outlook
The region between ₹770 and ₹780 is a strong support on the charts. That is holding well for now. Considering the sharp fall seen over the last three weeks, the chances are high for the Copper Futures contract to sustain above ₹770. So, we can expect a corrective bounce in the short-term.
As long as the MCX Copper contract trades above ₹780, a rise to ₹810 cannot be ruled out this week. If the contract manages to breach ₹810, the upside can extend to ₹830-₹835 in the next two to three weeks.
The contract will come under pressure only if it declines below ₹770 now. Such a break can drag the contract down to ₹760. A further break below ₹760 will see the fall extending to ₹745 eventually going forward.
For now, the preference will be to see a short-term corrective rise before the broader downtrend resumes.
Trade Strategy
Traders can go long now at ₹791. Accumulate on dips at ₹782. Keep the stop-loss at ₹774. Trail the stop-loss up to ₹794 as soon as the contract moves up to ₹798. Move the stop-loss further up to ₹800 when the price touches ₹805. Exit the long positions at ₹810.