Comments
The outlook for the Copper futures contract traded on the Multi Commodity Exchange (MCX) is bearish. The bounce from the July low of ₹601 per kg halted at ₹684 in mid-August and the prices declined thereafter. This indicates that the overall downtrend that has been in place since March is intact. Indicators are also showing a bearish signal. Also, the 21-Week Moving Average (WMA) has fallen below the 100-WMA.
The contract is currently trading at ₹628 per kg. Resistance is at ₹645 and then at ₹660. Any intermediate bounce can be capped either at ₹645 or at ₹660. There is room for a fall to ₹600 in the near-term. A corrective rally from ₹600 to ₹620-625 is a possibility. However, the overall picture will continue to remain weak, and the contract is likely reverse lower again from the ₹620-₹625 region. An eventual break below ₹600 will see the fall extending to ₹575 in the coming weeks.
Trading Strategy
Traders can go short at current levels in the MCX Copper futures contract. Accumulate shorts on a rise at ₹640. Keep the stop-loss at ₹665. Trail the stop-loss down to ₹618 as soon as the contract falls to ₹608. Move the stop-loss further down to ₹605 when the contract touches ₹595 on the downside. Book profits at ₹580.
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.