Copper price remained volatile last week on the back of the US Presidential Elections and the Federal Reserve meeting. The Copper Futures contract traded on the Multi Commodity Exchange (MCX) rose to a high of ₹861.30 per kg initially and then fell sharply giving back all the gains. The contract is currently trading at ₹834 per kg.
Outlook
The immediate outlook is mixed. Support is in the ₹822-₹820 region. Resistance is around ₹865. We expect the Copper Futures contract to oscillate in a range of ₹820-₹865 for some time. A breakout on either side of this range will then determine the next leg of move.
A break below ₹820 will be bearish. It can then drag the price down to ₹810-₹800. On the other hand, a decisive break above ₹865 will be bullish. Such a break will boost the momentum and take the MCX Copper Futures contract up to ₹900-₹910 in the coming weeks.
Trade strategy
Traders can wait for dips and see if the contract is sustaining above ₹820. Go long at ₹823 once the bounce happens. Keep the stop-loss at ₹813. Trail the stop-loss up to ₹828 as soon as the contract moves up to ₹835. Move the stop-loss further up to ₹842 when the price touches ₹848. Revise the stop-loss further up to ₹853 when the contract moves up to ₹859. Exit the long positions at ₹863.