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Copper futures on the Multi Commodity Exchange (MCX) rallied over the past two weeks. It found support at ₹700 and rebounded in early July. The contract is currently trading around ₹732.
The price action appears positive and as it stands, the likelihood of a rally is high. Potentially, the contract could touch ₹765 in the next few weeks.
However, from the current level of ₹732, there is resistance at ₹742. The contract has dipped on Monday on the back of this hurdle. But this is a corrective fall and may not last long as there are supports at ₹728 and ₹720. Both 20- and 50-day moving averages coincide at ₹720, making it a strong support. So, a fall below this level is not likely.
Going ahead, we expect the contract to resume the uptrend between the supports at ₹720 and ₹728.
Also read: Nifty prediction today – July 17, 2023: Index set to appreciate, buy Nifty futures
Trade strategy
Go long when copper futures fall to ₹728. Add more longs if the price softens to ₹720. Place initial stop-loss at ₹710.
When the contract breaks out of ₹742, alter the stop-loss to ₹728. If the contract touches ₹755, tighten the stop-loss further to ₹742. Book profits at ₹765.
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