The surge in the Copper price continues. A couple of weeks ago, we had expected the Copper Futures contract on the Multi Commodity Exchange (MCX) to rise to ₹840 per kg. This rise has happened. The MCX Copper Futures contract is currently trading at ₹846 per kg.
Outlook
The overall uptrend is intact. Within that, the rise has been gaining momentum over the last three weeks. There is no sign of a reversal yet. Until the prices turn lower, it is better to ride the rally rather than looking for the reversal point.
Support is now around ₹820. The MCX Copper Futures contract can rise to ₹875-₹880 over the next few weeks.
There is some resistance in the ₹875-₹880 region. Failure to breach ₹880 and a turn-around from there can trigger a corrective fall to ₹825-₹820. However, the broader trend will continue to remain up. A fall beyond ₹820 is less likely. As such we can expect the Copper Futures contract to reverse higher again and resume the uptrend. That leg of upmove will have the potential to breach ₹880 and take the price higher to ₹930.
Trade Strategy
Traders can go long now at ₹846. Accumulate on dips at ₹836 and ₹828. Keep a stop-loss at ₹815. Trail the stop-loss up to ₹852 as soon as the price goes up to ₹858. Move the stop-loss further up to ₹862 when the contract touches ₹866. Exit the longs at ₹875.