Comments
The copper futures contract traded on the Multi Commodity Exchange (MCX) has seen a sharp reversal from its low of ₹404.5/kg recorded on October 17. The contract is currently hovering just below a key short-term resistance at ₹423. Following a shallow decline in September the contract has witnessed a sharp rise in the last two weeks. This reflects the inherent strength in the contract. With this, the probability is high for the MCX-copper futures contract to breach its immediate resistance at ₹423 in the coming days. Such a break will add bullish momentum to the ongoing rally and take the contract higher to the next targets of ₹425 and ₹432.
Traders with a short-term perspective can go long in this contract. Stop-loss can be kept at ₹414 for the target of ₹431.
The bullish view could get negated if the contract fails to breach the resistance at ₹423. A reversal from this level can take the contract lower to ₹415.2 – the 21-day moving average support level. The short-term outlook will turn negative only if the contract records a decisive close below this level. In such a scenario, the contract’s fall can extend to revisit ₹405 levels.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
Comments
COMMENT NOW
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.