Comments
Copper prices have recovered this week after a sharp fall in the past week. The copper futures contract on Multi Commodity Exchange (MCX) tumbled from a high of ₹945.90 per kg last week to a low of ₹880 before recovering to trade at ₹907.
Outlook
The sharp fall last week was a correction within the overall uptrend. The bounce from ₹880 happened just above a key support level of ₹870. That indicates the overall uptrend is intact and a fresh leg of upward movement.
MCX copper futures contract can rise to ₹930 in a week or so. A break above ₹930 will boost the bullish momentum and take the contract up to ₹975.
The rise will be negated only if the contract declines below ₹870. Then there could be a fall to ₹850 initially. A further break below ₹850 will see an extended fall to ₹830.
However, as seen from the charts, the support at ₹870 is likely to hold and limit the downside. As such, there’s a high chance for a rise to ₹930 and ₹975 in the coming weeks.
Trade strategy
Traders can go long now at around ₹907. Accumulate on dips at ₹898. Keep a stop-loss at ₹876. Trail the stop-loss up to ₹915 as soon as the contract moves up to ₹925. Move the stop-loss further up to ₹935 when the contract touches ₹945 on the upside. Exit the longs at ₹960
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.