Copper futures on the Multi Commodity Exchange (MCX) broke out of resistance last week. This opened the outlook positive. Although the contract has largely stayed sideways post the breakout, it remains above key levels. Since the November series is set to expire on November 30, we are considering the December contract for analysis and trade recommendation.

The December copper futures rallied past the resistance at ₹717 last Monday. Thus, the inclination is bullish and will remain so since the contract has a couple of supports. One, the resistance-turned-support of ₹717. Two, ₹714 where both 20- and 50-day moving averages coincide.

We expect copper futures to appreciate in the near term to ₹740. On the other hand, if the contract faces downward pressure and falls below the support at ₹714, the downswing will most likely extend to ₹700.

Trade strategy

We recommended buying November futures if it breaks out of ₹715. Target and stop-loss were suggested at ₹730 and ₹708, respectively.

Traders holding the above trade can roll the longs to the December series – exit the November contract now and immediately go long on December futures.

Accordingly, the target and stop-loss need to be modified to ₹740 and ₹710 respectively.