The copper futures contract traded on the Multi Commodity Exchange (MCX) witnessed a sharp rise from its low of ₹412.2 a kg recorded on September 24. But the contract encountered resistance near ₹420 and is not gaining momentum to breach this level in the last couple of days.

This could keep the contract under pressure in the coming days. The overall outlook is bearish for the contract and a fall to ₹412 or even lower levels is likely in the coming days.

The market is closed on Thursday and is open only for the evening sessions on Friday and Monday due to domestic holidays. So trading would be muted. Traders can better stay out of the market and take fresh calls next week once the market opens after the long weekend.

However, traders with high risk appetite who want to play this muted market can consider taking short position in this contract.

Initiate fresh short position at current levels with a stop-loss at ₹422.5 for the target of ₹413. More short positions can be added on a rise near ₹420.

The outlook for MCX-copper will turn bullish only on a strong break above its 21-day moving average, currently at ₹422.2. The ensuing target on such a break will be ₹426.

Note: The recommendations are based on technical analysis. There is a risk of loss in trading.

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