Copper futures (May expiry) on the Multi Commodity Exchange (MCX) by closing at ₹858 last Friday, posted fifth straight weekly gains. The uptrend appears steady, and the contract could rise more before it takes a U-turn.
From the current level, the contract could touch ₹880. Note that ₹886 is the all-time high for copper futures in the domestic market which was made in March 2022. So, there is a good chance for participants to book some profits between ₹880 and ₹886, which can lead to a correction in price.
If there is a decline in price, the nearest support for May copper futures can be seen at ₹840. Notable support below ₹840 is at ₹800. A fall below ₹800 can turn the outlook bearish for copper futures for the short-term.
Trade strategy
Last week, we recommended buying copper futures at ₹846. Retain this trade with the stop-loss at ₹850. Book profits at ₹880.