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The price of copper has primarily been flat since the beginning of the year. The continuous contract of the red metal on the Multi Commodity Exchange (MCX) is currently hovering around ₹745.
Although it is now in a sideways crawl, the contract has moved on to the rising trendline support at around ₹738. Notably, the price band between ₹720 - ₹730 is a strong demand zone. Therefore, the contract is expected to gradually pick up momentum in the forthcoming sessions. It is likely to begin a rally between the current level and ₹730.
The contract will most probably touch ₹770, a potential resistance, in the near term. But the futures can rally past this level and appreciate to ₹780. Subsequent resistance is at ₹800. On the downside, there is a confluence of supports between the current level and ₹720. In case ₹720 is breached, the near-term outlook of the contract become bearish, where the price will most probably fall to the critical support of ₹685.
Considering the above factors, one can maintain a bullish view ofcopper futures. So, initiate fresh longs at current levels and accumulate more if the price declines to ₹730. Place initial stop-loss at ₹718. Once the contract crosses over ₹770, revise the stop-loss to ₹745. Liquidate all the longs when the futures touch ₹780.
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