Comments
The copper futures contract traded on the Multi Commodity Exchange (MCX) is facing strong hurdle at ₹420/kg. As expected, the contract failed to breach this level and fell to ₹412 in the past week. It is now hovering above this important support level of ₹412 since Monday.
The 21-day moving average is also poised near the same level of ₹420 which now makes it a very strong resistance for the contract. So the outlook continues to remain bearish. While it trades below ₹420, there is a possibility of it breaking below the immediate support at ₹412 to fall to ₹409. A further break below ₹409 can drag the contract lower to ₹400 in the coming days.
Traders with a short-term perspective can go short at current levels. Stop-loss can be kept at ₹421 for the target of ₹406.
The chances for an intermediate rise to test the resistance at ₹420 cannot be ruled out. But such rallies can be used as an opportunity to accumulate more short positions.
The bearish outlook will get negated only on a strong break and close above ₹420. The ensuing target on such a break will be ₹426. But such a sharp rally looks unlikely at the moment.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
Comments
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.