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Copper prices have been broadly stable, and range bound for more than two months now. The Copper Futures contract trades on the Multi Commodity Exchange (MCX) has been stuck between ₹610 and ₹766 per kg since July. Within this range, the contract made a low of ₹720.60 last week and has been moving up from there. It is currently trading at ₹734 per kg.
Outlook
Although there is a broad range, looking at the short-term charts, it looks like the Copper contract has been moving up gradually. The 21-Week Moving Average (MA) has been giving strong support for the contract since July. This support is now currently at ₹721. As long as the contract stays above this support, the short-term outlook will remain positive. The Copper futures contract can rise to ₹760 over the next couple of weeks.
This bullish outlook will go wrong if the price declines below ₹721. In that case, the Copper contract can fall to ₹700 and even lower. But such a fall looks less likely at the moment.
Trade Strategy
Traders can go long now. Accumulate on dips at ₹728. Keep the stop-loss at ₹718. Trail the stop-loss up to ₹738 as soon as the contract moves up to ₹743. Move the stop-loss further up to ₹748 when the price touches ₹753. Exit the long positions at ₹758.
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