Comments
Copper futures traded on the Multi Commodity Exchange (MCX) are continuing to trade in ranges between ₹369 and ₹390 over the last one month.
The contract recorded a high of ₹389.6 on Monday and is reversing lower. It is currently trading near ₹386.
Though the sideways range remains intact, the down move this week seems to lack momentum.
The price action on the daily chart suggests that the contract could take support at ₹380 in the coming days.
A reversal from here will have the potential to breach the range above ₹390 and take the contract higher, thereafter.
Also the sharp reversal from ₹368 in the last three weeks which is denoted by long wicks on the weekly candle stick chart implies that that the contract is receiving strong buying support at every decline.
This leaves an increased possibility of the contract breaking the range upward rather than downward.
Having said this, a break and a rise above ₹390 towards ₹397 – the 200-day moving average resistance level is more likely to be seen in the coming days.
Traders with a short-term perspective can go long. Stop-loss can be placed at ₹378 for the target of ₹396.
Dips to ₹380 can be used to accumulate long positions.
This bullish outlook will get negated if the contract falls decisively and records a strong daily close below ₹380 in the coming days.
In such a scenario, a fall to ₹375 and ₹370 is possible.
(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.