Comments
The copper futures contract traded on the Multi Commodity Exchange (MCX) advanced almost 3 per cent to ₹317 per kg in the week ago, taking support at around ₹305.
This momentum extended this week as well and the contract has gained 2.7 per cent over the initial two trading session of the week.
The contract now trades around ₹325 and faces a key resistance ahead at ₹327 which is the 200-day moving average.
Both the daily and weekly relative strength indices are charting towards the bullish zone.
Moreover, the daily as well as weekly price rate of change indicators are featuring in the positive territory implies buying interest.
With the ongoing bullish momentum, the contract can breach the 200-day moving average and trend upwards to ₹330 and then to ₹340 in the short to medium term. Traders with a short- and medium-term horizon can hold their long position and also consider accumulating now with a stop-loss at ₹316.
Exit the long positions either at ₹330 or ₹340 levels depending on the risk appetite.
On the other hand, the outlook will turn negative on an emphatic decline below the immediate supports at ₹315 and ₹310. Such a fall can pull the contract down to ₹305 or even to ₹300 in the short-term.
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.