Comments
The continuous futures contract of copper on the Multi Commodity Exchange (MCX) fell off the resistance at ₹800 early this week. It is currently trading at ₹767. Although the momentum is in favour of the bears, there is a support at ₹765, which can arrest the decline.
On the back of the support at ₹765, the contract might start consolidating just above that level. But if there is a rebound, the price could go back up to ₹800.
On the other hand, if the contract falls below ₹765, we might see a quick fall to ₹745 – its nearest support. Note that a breach of ₹745 can confirm a double-top pattern, which hints at a deeper fall. As per the pattern, if the contract invalidates the support at ₹754, it will open the doors for a fall to ₹690.
Also read: Lease for Rakha copper mines yet to be renewed: Mines Ministry officials
Trade strategy
Although the inclination is bearish, traders can stay away from taking fresh positions. Consider going short with a stop-loss at ₹775 if the copper futures slip below the support at ₹765. Book profits at ₹745. This is a short-term trade.
Thereafter, fresh positions can be initiated based on how the contract responds to the support at ₹745.
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.