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The copper futures contract on the Multi Commodity Exchange (MCX) has risen sharply after making a low of ₹732 per kg on Monday. It is currently trading at ₹752 per kg.
Immediate resistance is at ₹759-760. But, the current bounce-back from around ₹732 on Monday has happened from an important trendline support level of ₹730.
As such, the chances are high for the contract to break above ₹760 in the coming days. Such a break above ₹760 can take the contract up to ₹775 initially. A further break above ₹775 will then pave way for an extended rise to ₹790 and even ₹810 over the medium-term.
Traders can go long at current levels. Accumulate longs on dips at ₹736. Keep the stop-loss at ₹728. Trail the stop-loss up to ₹756 as soon as the contract moves up to ₹764. Move the stop-loss further up to ₹776 as soon as the MCX Copper contract touches ₹782. Book profits at ₹798.
The bullish outlook will get negated only if the contract breaks below ₹730. Such a break will be bearish. In that can the MCX Copper contract can see a fall to ₹710-700 in the coming weeks.
But such a downmove looks less likely as the support around ₹730 appears to be strong and it is more likely to limit the downside.
As such, we see high chances of the contract moving up to ₹775 and ₹790 levels in the coming weeks.
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