The outlook for copper futures traded on the Multi Commodity Exchange (MCX) remains bullish. The contract’s fall from a high of ₹362.85 a kg recorded on February 18 found support at ₹352.75.

Thereafter, the contract has been trending higher. It breached its resistance at ₹360 and recorded a high of ₹366.85 on Tuesday, a 3 per cent rally on a single day. It is currently trading near ₹361.3.

There is no immediate danger of any fall as long as the contract trades above ₹360.

Immediate resistance is at ₹363. A strong break above this resistance can take the contract higher to ₹369 in the coming days. Traders with a short-term perspective can go long at current levels. Stop-loss can be placed at ₹358 for the target of ₹367.

Support for the contract is at ₹359. A fall below this level will mitigate chances of a rally to ₹369. Such a fall can drag the contract lower to ₹354 and ₹352.

The 21-day moving average support is poised at ₹352. The outlook for MCX copper futures will turn bearish only on a strong fall below ₹352.

The next target will be ₹347. However, such a sharp fall looks unlikely at this juncture.

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

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