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The copper futures contract (₹749 per kg) on the Multi Commodity Exchange (MCX) has been declining over the last two weeks. This fall is getting support in the ₹738-737 per kg region. The contract has been consolidating above this support zone over the last few days.
As long as the contract manages to sustain above ₹737, there are chances of it seeing a corrective bounce towards ₹760 and ₹765 in the near-term. However, it has to rise past ₹765 decisively in order to turn the outlook bullish again. Inability to break above ₹765 and a reversal from the ₹760-765 region will keep the downtrend intact. A strong break below ₹737 will confirm the beginning of a fresh leg of fall. Such a break can drag the MCX-copper contract towards ₹700 and ₹680 in the coming weeks.
Traders can wait and initiate fresh short positions on a break below ₹737. Stop-loss can be placed at ₹752. Trail the stop-loss down to ₹730 as soon as the contract moves down to ₹720. Move the stop-loss further lower to ₹712 as soon as the contract touches ₹702. Book profits at ₹690.
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