Copper futures (November expiry) on the Multi Commodity Exchange (MCX) has been tracing a sideways trend since the beginning of October. It has been oscillating between ₹700 and ₹710.
It was earlier in a downtrend. So the bears have lost some momentum. However, this does not guarantee a bullish reversal. Especially given that copper futures is now trading in a range, the direction of the break can indicate the next possible swing in price.
A breakout of ₹710 can turn the short-term outlook positive and copper futures may rally to ₹750.
On the other hand, below the range bottom of ₹700, there is another important support at ₹690. So, the bears should drag the contract below this level to regain control.
If the support at ₹690 is removed, we can see a quick decline towards the support band of ₹660-665.
Trade strategy
Traders can stay out for now as copper futures is not trending at the moment. Consider fresh positions along the direction of the break from the range of ₹690-710.