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The latest decline in the copper futures on the Multi Commodity Exchange (MCX), which began in early June, seems to retain its momentum. The decline, which began at around ₹810, has dragged the contract to the current level of ₹755 and the price action hints at further decline from here.
The copper futures is likely to slip below the prior low of ₹739.25. But note there is a support at ₹732 against which the contract might see a rebound. Such a bounce can lift the contract back to ₹760 post which there could be another leg of downtrend.
On the other hand, if price drops below ₹732, the contract can witness a quick fall to ₹715.
A week ago, we had recommended to initiate fresh short positions at ₹785 with an initial stop-loss at ₹800. Since then, the price has dropped and after suggested modifications, it would now have a revised stop-loss at ₹775. Retain these shorts and liquidate the positions when price falls to ₹732. For fresh trades thereafter, we can review the price action then and decide.
One can consider fresh short at current levels too i.e., short now at around ₹755 and keep stop-loss at ₹775. Exit at ₹732.
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