The sharp rise in the copper futures traded on the Multi Commodity Exchange from the April 15 low of ₹368.8/kg halted at ₹387 on Monday. Subsequently, the contract reversed lower from this high and is currently trading near ₹374.

The contract has been range-bound between ₹368 and ₹390 for more than three weeks. Within this range, it is declining after testing the upper end of the range. So there is a strong likelihood of the current down move to extend towards ₹370 and ₹368 in the coming days. An immediate break below ₹368 looks less likely now. The contract can reverse higher again from the ₹368-370 zone. The sideways range is expected to remain intact for some more time.

Short-term traders can stay out of the contract at the moment. Wait for a decline and enter fresh long position at ₹370. Stop-loss can be placed at ₹364 for the target of ₹380.

A break out on either side of ₹368-390 will decide the next leg of move for the contract.

A break below ₹368 will be bearish and pull the contract down to ₹360 and ₹350. On the other hand, a decisive break above ₹390 could add bullish momentum to the contract and take it higher to ₹400 and ₹410 there after.

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

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