The Copper futures contract traded on the Multi Commodity Exchange (MCX) is managing to sustain above ₹300/kg levels. But, it is not gaining momentum to extend the rally. The contract is currently trading at ₹312. Immediate supports are at ₹308 and ₹307. The next key supports are at ₹303 and ₹300. On the charts, there is no threat for an immediate fall in the contract and a corrective rally is possible as long as the contract trades above ₹300. A rise to test the immediate resistance at ₹316 – the 38.2 per cent Fibonacci retracement level is possible now. A strong break above ₹316 will boost the momentum and take the contract further higher to ₹320 and ₹322.

Short-term traders with high risk appetite can go long at current levels. Stop-loss can be kept at ₹306 for the target of ₹320. Intermediate dips to ₹308 can be used to accumulate long positions.

If the contract fails to break above the immediate resistance level at ₹316, it can witness a fall back to ₹310 and ₹308. However, the outlook will turn bearish only on a strong fall below ₹300. Such a fall will keep the primary downtrend intact and drag the contract lower to ₹295 and ₹290 thereafter.

Remember, that the broader trend is still down. Therefore, the upside could be capped to the resistance at ₹322 in the short-term.

The 21-week moving average resistance at ₹333 is the subsequent key level to watch. Only a strong break above this hurdle will turn the overall outlook positive.

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

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