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Copper price continues to trade lower. The copper futures contract on the Multi Commodity Exchange has been coming down since the beginning of this month and has been in a downtrend. However, the price action over the last one week indicates that the fall has been stabilising. The MCX Copper Futures contract is currently trading at ₹817 per kg.
Outlook
The price action over the last one week indicates that the price has been consolidating. The Copper contract has been oscillating between ₹800 and ₹835 for some time now. The region between ₹810 and ₹800 is a strong support. So, the recent price action indicates that the downtrend could be coming to an end.
The sideways consolidation can continue for some more time. But eventually we can expect the contract to breach ₹835 in the coming days. Such a break can take the MCX Copper Futures contract up to ₹850-₹870.
The bullish outlook will get negated only if the contract declines below ₹800. If that happens, a fall to ₹790 and lower levels can be seen.
Trade Strategy
Traders can go long now at ₹817. Accumulate on dips at ₹810. Keep the stop-loss at ₹793 initially. Trail the stop-loss up to ₹822 as soon as the contract goes up to ₹830. Move the stop-loss further up to ₹835 when the price touches ₹845. Exit the long positions at ₹860.
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