Copper futures traded on the Multi Commodity Exchange (MCX) have been stuck in a narrow range between ₹406 and ₹417 a kg for more than a week now. The contract is currently poised at the mid-point of this range. It has been finding support at ₹408.8 over last couple of days. The immediate outlook is bullish. A rise to test ₹417, the upper end of the range looks more likely.
Traders with a short-term perspective can go long. Stop-loss can be placed at ₹408 for the target of ₹416.
A break out on either side of ₹406-417 will decide the short-term trend for the contract. A strong break above ₹417 will take it higher to ₹422. On the other hand, decline below ₹406 can drag the contract to ₹400.
In the medium-term as well, the contract is trading sideways. It has been ranged between ₹403 and ₹423 over last six weeks. The key moving averages on the weekly charts are flat. This suggests that it could retain its medium-term sideways consolidation between ₹403 and ₹423 for some more time. However, the bias within this range is bullish. The contract has a strong trend line support at ₹400. A decline below this level is less likely. Having said this, a strong break above ₹423 can take the contract higher to ₹430 and ₹435 in the medium term.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
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