Comments
Copper futures on the Multi Commodity Exchange (MCX) rallied over the past couple of weeks. The March contract bounced off the support at ₹710 on February 12. It marked a high of ₹735.45 on February 21 before moderating to the current level of ₹726.
The contract is facing the 50-day moving average resistance, which is now at ₹732. So a rally is likely beyond this level.
Also, from the chart of the continuous contract of copper, ₹730-740 appears to be a resistance band. So the probability of copper futures falling is high.
We expect March copper futures to decline to ₹710 in the short term. Notably, the region between ₹700 and ₹710 is a support. A breach of ₹700 can trigger another leg of downswing, possibly to ₹685.
On the other hand, copper futures should decisively break out of the resistance at ₹740 to turn the trend bullish.
Trade strategy
Short copper futures at the current level of ₹726. Add shorts if the contract rises to ₹731. Place stop-loss at ₹742. When the contract touches ₹715, tighten the stop-loss to ₹722. Book profits at ₹710.
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.