Comments
Copper futures on the Multi Commodity Exchange (MCX) is now stuck between ₹730 and ₹760. Nevertheless, the overall trend is bearish and the likelihood of the contract falling below ₹730 is high.
Substantiating the bearish outlook, the copper futures confirmed a double-top pattern towards the end of April, according to which, the price could decline to ₹700. Considering that there is minor support at ₹710, we can assume that the price band of ₹700-710 can offer good support.
Also read: Nifty Today – May 15, 2023: Index expected to rally
The bearish outlook will change only if the contract decisively breaks out of the resistance at ₹760. If that occurs, we might see a rally to ₹780 or even to ₹800. However, the broader inclination remains bearish at this juncture.
Trade strategy
Nearly three weeks back, we had recommended initiating short positions on copper futures at three levels i.e., ₹733, ₹750 and ₹760. These shorts were triggered and thus, the average short price is ₹747. Stop-loss was suggested at ₹775.
Traders who hold these shorts can retain them. Going ahead, when the contract falls below ₹720, tighten the stop-loss to ₹740. When the price touches ₹710, liquidate half of the shorts and then alter the stop-loss to ₹722. Exit the remaining positions at ₹700.
Comments
COMMENT NOW
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.