Copper futures on the Multi Commodity Exchange (MCX) have been on a rise since the final week of October. It bounced off a support of ₹700. The December contract closed at ₹724 on Friday. Since the December series is nearing expiry, we take the January contract for analysis.
The January expiry copper futures closed at ₹732.6 last week. The price action over the past few days shows that the contract is experiencing selling pressure between ₹735 and ₹738. If the contract surpasses this resistance band, it can quickly rally to ₹750, a resistance. Subsequent resistance is at ₹760.
On the other hand, if January copper futures falls from the current level, it can find support at ₹726 and ₹720. As long as the price remains above ₹720, the inclination will be bullish.
Trade strategy
We suggested going long on December futures at ₹724 last week with a stop-loss at ₹710. Since the contract expires this week, we recommend rolling over to the next series.
Exit the December futures long and initiate a fresh buy in January copper futures now at ₹732. Stop-loss can be at ₹720. When the contract rises above ₹742, tighten the stop-loss to ₹732. Exit at ₹750.
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