Comments
Copper prices have dropped sharply over the last one week. The copper futures contract traded on the Multi Commodity Exchange (MCX) hit a high of ₹715 per kg on Monday last week, and has declined about 2 per cent from there. The contract is currently trading at ₹700 per kg.
Outlook
The outlook is bearish. The region between ₹707 and ₹710 is a strong resistance zone. Any intermediate bounce this week is likely to be capped at ₹710. Fresh sellers are likely to emerge at higher levels.
The copper futures contract can fall to ₹670 in a week or two. A break below intermediate support at ₹685 can drag the contract going forward.
If the contract sustains above ₹685 and bounces back, a rise to ₹700 and higher levels is possible. In that case, the contract can remain in a range of ₹685-₹715 for some time. The stock has been oscillating in this range for more than a month now. As such the price action around ₹685 will need close watch.
Trade strategy
Traders can go short now. Accumulate shorts on a rise to ₹708. Keep the stop-loss at ₹715. Trail the stop-loss down to ₹698 as soon as the contract falls to ₹693. Move the stop-loss down to ₹692 when the contract touches ₹689 on the downside. Exit the shorts at ₹685.
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.