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The copper futures contract traded on the Multi Commodity Exchange (MCX) has been volatile, testing the key resistance band between ₹335 and ₹340 per kg over the past two weeks.
This resistance band has been capping the upside for the contract since early March 2016.
Witnessing selling pressure, the contract fell 1 per cent to trade at ₹329.6/kg on Wednesday. Though the short-term trend has been up from the June low of ₹298, the contract is experiencing selling pressure at the significant resistance band and it is finding it difficult to break this resistance band.
Only an emphatic break above the ₹335-₹340 resistance zone will strengthen the uptrend and take it northwards to ₹350 and ₹360 in the short-term.
The daily indicators are losing strength and the contract may continue to decline in the near term.
Immediate supports at ₹325 and ₹320 can provide a base for the corrective decline.
As long as the contract trades above the significant trend-deciding support level at ₹315, the short-term uptrend will remain intact.
A strong fall below ₹315 will mar the uptrend and pull the contract down to ₹305 and then to ₹300.
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