Copper price has been coming over the last one week. The Copper Futures contract traded on the Multi Commodity Exchange (MCX) touched a low of ₹790.45 per kg on Friday last week. From there the price has recovered. It is currently trading at ₹802 per kg.

Outlook

The region between ₹790 and ₹788 is a very good support. As such the bounce from the low of ₹790.45 could be significant. It could be the beginning of a fresh leg of up move. Price action over the last few months indicate that the contract has seen a strong rise every time on a bounce from around ₹790.

So, a strong follow-through rise from here can take the MCX Copper Futures contract up to ₹812 – the next intermediate resistance, in a week or two. An eventual break above ₹812 will then clear the way for a further rise to ₹827.

From a medium-term perspective, this leg of rise will have the potential to target ₹850 on the upside in a month or two.

The bullish view will go wrong only if the contract declines below ₹788. If that happens, there is a danger of a fall to ₹750.

Trading strategy

Traders can go long now at ₹802. Accumulate on dips at ₹794. Keep the stop-loss at ₹784. Trail the stop-loss up to ₹807 as soon as the contract goes up to ₹810. Move the stop-loss further up to ₹814 when the price touches ₹818.  Exit the long positions at ₹825.

Published on December 23, 2024