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The short-term outlook for the Copper futures contract traded on the Multi Commodity Exchange (MCX) is bullish. The pull-back move from the high near ₹772 per kg made in the last week of December seems to be ending. The contract has a strong support in the ₹728-₹725 region. It is currently trading at ₹740 per kg. The chances are high for the contract to sustain well above the support at ₹725. A fresh rise either from here itself or after a dip to ₹728-₹725 can take the contract up to ₹750-₹755 initially.
A break above ₹755 will then pave way for a further rise to ₹770 and even ₹780-₹785 in the coming weeks. Traders can go long at current levels accumulate on dips at ₹729. Keep the stop-loss at ₹718. Trail the stop-loss up to ₹743 as soon as the contract moves up to ₹752. Move the stop-loss further up to ₹753 as soon as the contract rises to ₹762. Book profits at ₹770. The bullish view will go wrong if the contract breaks below ₹725 decisively. Such a break can drag the MCX Copper futures contract lower to ₹710 initially. A further break below ₹710 can see the fall intensifying towards ₹690 and ₹680 eventually. But the price action in the last couple of days indicate that the contract has been getting buying interest at lower levels. As such the break and fall below ₹725 is less probable.
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