MCX-Copper (₹396.7)

The MCX-Copper futures contract skyrocketed 21.5 per cent last month. The contract made a high of ₹414.8 last week and has come off from there. The 200-week moving average at ₹383 is a key support for the contract. A test of this support looks likely in the near term as long as it trades below the immediate resistance at ₹405. A fall below ₹383 is less probable. A reversal from ₹383 can take the contract once again to ₹405 or ₹410. A range-bound move between ₹383 and ₹415 is possible for some time. Traders can go long on a reversal from the 200-week moving average support level of ₹383. Stop-loss can be placed at ₹373 for the target of ₹403. An eventual break above ₹415 can take it higher to ₹430 or even ₹440. The outlook will turn negative if the contract breaks below ₹383 decisively. Such a break can drag the contract lower to ₹370 or ₹365 initially. Further break below ₹365 may drag it lower to ₹350 or even ₹340 thereafter.