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The recent upmove in the copper futures contract on the Multi Commodity Exchange (MCX) seems to be losing momentum.
The bounce-back move, from the low near ₹685 made last week, is currently facing resistance below ₹725. The contract hit a high of ₹724 on Monday and has dipped from there.
Another strong t resistance is at ₹738 which can cap the upside in the near-term in case the contract breaks above ₹725 in the coming days.
A much higher resistance is at ₹755. The downtrend is likely to remain intact as long as the contract trades below ₹738.
Traders with a short-term perspective can go short at current levels. Accumulate short positions on rallies at ₹733. Keep the stop-loss at ₹748. Trail the stop-loss to ₹710 as soon as the contract moves down to ₹695.
Move the stop-loss further lower to ₹685 as soon as the contract comes down to ₹670. Book profits at ₹660.
The bearish view will go wrong if the contract breaks above ₹738. In that case, it can rise to ₹745-750 and then reverse lower.
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