A fresh leg of down move has begun in copper futures traded on the Multi Commodity Exchange (MCX) in line with our expectation.
The contract continued to face resistance at ₹360/kg and plunged from a high of ₹357.6 recorded on January 22 – declining over 5 per cent over the past week.
It is currently trading near ₹337.
The support at ₹340 has been breached in this fall. . This level will now act as a resistance.
The next key resistance is at ₹353. The overall downtrend remains intact.
A fall to ₹325 or even ₹320 appears likely now.
Traders with a short-term perspective can initiate fresh short positions at current levels. Stop-loss can be placed at ₹344 for the target of ₹327.
Medium-term traders who have initiated short position a couple of weeks back can continue to hold their positions.
But revise stop-loss lower to ₹357 from the earlier level of ₹362.
Retain the target at ₹320. Accumulate more shorts if an intermediate rally to ₹353 is seen.
The downside pressure for the contract will get some relief only if it breaks above ₹353 decisively. But such a strong rise appears unlikely at present.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
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.