Copper prices have risen well over the last two weeks. The Copper Futures contract (September) on the Multi Commodity Exchange (MCX) has surged from a low of ₹775 per kg. It touched a high of ₹820.35 on Tuesday and has come down sharply from there. The contract is currently trading at ₹813 per kg.
Outlook
The downtrend that was in place since May this year seems to have ended. The region between ₹805 and ₹800 will now act as a very good support for the Copper Futures contract (September). A dip to test this support zone from current levels cannot be ruled out. However, we can expect the MCX Copper Futures contract to reverse higher again from the ₹805-₹800 support zone. Such a bounce and a subsequent rise above ₹815 will boost the bullish momentum. The MCX Copper contract can then rise to ₹828-₹830 initially. A further break above ₹830 will then clear the way for a further rally to ₹850.
This bullish outlook will get negated only if the contract declines below ₹800. If that happens, we can see a fall to ₹790 and lower.
Trade Strategy
Last week, we had suggested to go long on a break above ₹810. Traders can hold on to those long positions. Indeed, accumulating at ₹804 can also be considered. Retain the stop-loss at ₹708. Trail the stop-loss up to ₹815 as soon as the contract moves up to ₹820. Move the stop-loss further up to ₹823 when the price touches ₹828. Exit the longs at ₹835.