Commodity Calls

MCX-Copper is in a strong uptrend

Gurumurthy K BL Research Bureau | Updated on January 09, 2018


Copper prices have gathered momentum over the last few weeks. The metal has been on a strong uptrend since June. This uptrend has gathered momentum from the last week of July. The COMEX-Copper futures contract surged 3 per cent last week breaking above a key psychological hurdle of $3 per pound. The contract has extended the upmove in this week as well and is currently trading at around $3.06 per pound. On the domestic front, the Copper futures contract on the Multi Commodity Exchange (MCX) has surged over 6 per cent since the first week of this month breaking above a key resistance level of ₹415 . The MCX-Copper is currently trading at ₹434 a kg. Reports on improving demand from China coupled with a weak dollar has taken the metal prices sharply higher over this period.


Copper has been on a strong uptrend since late October 2016. This uptrend is intact. The COMEX-Copper has a key support in the $3.0-$2.99 zone. As long as it trades above this support, further rally to $3.25 or even to $3.30 is likely in the coming weeks. The region around $3.3 is the next significant resistance. A corrective fall from $3.30 targeting $3.15 or even $3.0 cannot be ruled out thereafter. On the other hand, the near-term view may turn negative if the contract fails to sustain above $2.99 in the coming days. A fall below $2.99 can pull the prices lower to $2.95 or $2.93.

On the domestic front, the MCX-Copper futures contract has risen breaking above the 61.8 per cent Fibonacci retracement level of ₹428 this week. While the contract sustains above this support, the rally can extend to ₹445 or ₹450 in the coming weeks. The region between ₹445 and ₹450 is the next significant resistance for the contract. A pull-back from this resistance region can drag the contract lower to ₹425 or ₹420.

The region between ₹415 and ₹410 is a key resistance-turned-support zone for the MCX-Copper contract. Only a strong fall below ₹410 will turn the outlook negative. But such a sharp fall looks unlikely at the moment.

Note: The recommendations are based on technical analysis and there is a risk of loss in trading.

Published on August 29, 2017

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor