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Copper prices have been oscillating in wide range for more than three months now. The Copper futures contract traded on the Multi Commodity Exchange (MCX) has been range bound between ₹765 and ₹868 per kg since mid-July this year. Within this range, it is currently trading at ₹810 per kg.
Outlook
The outlook is unclear. In the near-term, the contract has been coming down failing to breach ₹830. That leaves the chances high for the MCX Copper futures contract to see a fall to ₹800-₹790 in the near-term. A bounce from the ₹800-₹790 region could be bullish and can take the price up to ₹830 again. An eventual break above ₹830 will boost the bullish momentum and trigger a rise to ₹855-₹860 in the coming weeks.
In case the contract breaks below ₹790, the downside can extend up to ₹780. Considering the recent price action on the daily chart, we expect the Copper futures contract to rise from the ₹800-₹790 support zone.
So, the preferred path of move would be to see a dip to ₹800-₹790 and then rise back to ₹830 and ₹850 eventually.
Trading strategy
Traders can wait for dips. Go long at ₹805 and ₹795. Keep the stop-loss at ₹775. Trail the stop-loss up to ₹815 as soon as the contract moves up to ₹820. Move the stop-loss further up to ₹822 when the contract touches ₹826. Exit the long positions at ₹830.
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