Copper futures on the Multi Commodity Exchange (MCX) has been gradually gaining since the final week of October. It took support at ₹700 and started to move northwards. On Monday, it closed at ₹720.8.
While there are chances for copper futures to see a price decline, it is likely to be only temporary. That is, the downswing is likely to be restricted to ₹718, a potential support. That is, going ahead, we expect the contract to see a price dip to ₹718 and then see a rally to ₹740 in the coming weeks.
But note that if copper futures fall below ₹714, where the 50-day moving average currently lies, the trend can turn bearish for the short-term. Nearest support below ₹714 is at ₹700.
Trade strategy
Buy copper futures at the current level of ₹724. Add longs in case the price dips to ₹718. Place stop-loss at ₹710 at first.
When the contract surpasses the hurdle at ₹730, tighten the stop-loss to ₹720. Book profits at ₹740.
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.