Comments
Copper futures on the Multi Commodity Exchange (MCX) bounced off support at ₹720 last week. The continuous contract closed at ₹736.7 on Friday, and it has opened the week on a positive note and is up 0.2 per cent so far today.
There was a strong roll-over of 98 per cent in copper futures by the end of last week and, thus, the uptrend is likely to continue, at least in the near-term. That said, the August futures, currently trading at around ₹745, is right on a resistance.
In case the hurdle at ₹745 is breached, the contract can rally to ₹765, the nearest resistance. Subsequent resistance is at ₹780. On the other hand, if the price moderates from the current level, it can fall to the support band of ₹734-736. A breach of ₹734 can drag the contract to ₹725.
Nevertheless, the overall bias is bullish, and the chance of a fresh breakout is high.
Trade strategy
Buy August expiry copper futures at the current level of ₹745. Add more longs in case the price dips to ₹737. Place stop-loss at ₹730 at first.
Move the stop-loss up to ₹745 when the contract touches ₹755. Tighten the stop-loss further to ₹752 when the price rises to ₹760. Book profits at ₹765.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.