Yoganand D
The price of Copper futures continuous contract on the Multi Commodity Exchange of India (MCX) had recently breached a key medium-term resistance at ₹700 per kg and continued to trend upwards. Last week, the commodity had gained 3.6 per cent with good volume. Again this week, the contract extended the rally and has advanced 3 per cent so far. The contract is currently hovering at ₹757. Across all-time frames – the short, medium and long-term, the contract is in an uptrend.
Following a corrective decline, the contract found support at around ₹660 in late March this year and continued to trend upwards. Since then, it has been in a short-term uptrend. The contract trades well above the 21- and 50-day moving averages. Both the daily and the weekly relative strength indices are featuring in the bullish zone backing the uptrend. However, the contract needs to surpass the immediate resistance is at ₹763 to reinforce the bullish momentum and take the contract northwards to ₹775 and then to ₹800 over the short term. Traders can take fresh long positions on a rally above ₹763 with a fixed stop-loss.
On the other hand, a strong plunge below the immediate support level of ₹724 can drag the contract down to ₹710 and then to ₹700 levels. A conclusive fall below the significant support level of ₹700 will alter the short term uptrend and drag the contract down to ₹690 and then to ₹680 levels over the short term.