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The copper continuous futures contract on the Multi Commodity Exchange of India (MCX) has been on a long-term uptrend since it took support at ₹335/kg in March 2020. In February this year, the contract found support at ₹585 and resumed the uptrend.
However, the contract met with a vital hurdle at ₹800 in early May and began to trend downwards. It recently took support at ₹685 and slightly moved higher.
On Tuesday, the contract climbed 1.2 per cent and was trading at ₹706 levels. It has a vital support in the band between ₹680 and ₹685. A decisive fall below this base zone will strengthen the downtrend and pull the contract down to ₹660 and then to ₹645.
Subsequent supports are placed at ₹630 and ₹600. On the upside, the contract has an immediate resistance at ₹735. A clear break above this barrier can take the contract higher to ₹770 and then to ₹800 levels.
Traders with a short-term view should tread with caution as long as the contract trades above ₹680 levels.
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