Comments
Copper prices have been largely flat over the past week. The December contract, oscillating in the ₹665-₹680 band, will have a bullish bias as long as it stays above ₹665.
We forecast a rebound from here to take the contract past a minor hurdle at ₹680. A breach of this level can quickly lift the copper futures to the ₹700-705 band.
In case the support at ₹660 is breached, we will most probably witness a swift fall to ₹650 at first. The downside can be extended to ₹635.
Overall, the price action since the beginning of October shows that the contract has been forming higher lows and higher highs. On this basis, the support at ₹665 is expected to be a base against which the contract will establish the next leg of rally.
Trade strategy
One can go long at the current level of ₹676 and add more longs when the price dips to ₹665. Place the initial stop-loss at ₹650. When the contract rallies past ₹680, tighten the stop-loss to ₹670. Exit the longs at ₹700, as there is a good chance the contract will see price moderation after rallying to this level.
Note that this is a short-term trade recommendation.
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.