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The Copper Futures (₹729 per kg) contract on the Multi Commodity Exchange (MCX) has been stuck in a sideways range. The contract has been oscillating between ₹725 and ₹751 since the beginning of this month. It is now hovering above the lower end of this range. The bias on the chart is bearish. As such, we expect the contract to break this range on the downside below ₹725. Such a break can drag it to ₹700-₹690 in the coming days. The region between ₹690 and ₹680 is a good support zone. The price action in this region will need a close watch for a strong bounce-back.
On November 3, we had recommended to take short positions on a break below ₹737. Traders can hold on to that short position. Retain the stop-loss at ₹752. Trail the stop-loss down to ₹730 as soon as the contract moves down to ₹720. Move the stop-loss down to ₹712 as soon as the contract falls to ₹705. Exit the short positions at ₹690. The bearish outlook will get negated if the contract breaks above ₹751 decisively. Such a break can then pave the way for a fresh rise to ₹780 initially and then to ₹800-₹810 eventually. But such a strong rise looks less probable on the charts and the chances are high to see ₹700-₹690.
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