Commodities

MCX copper can extend rally

Yoganand D BL Research Bureau | Updated on January 20, 2018 Published on April 20, 2016

copper

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.

Published on April 20, 2016
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