Copper futures has seen a sharp drop in price recently. The continuous contract, after hitting a high of ₹922.20 on March 26, declined in the following sessions and closed at ₹797.85 on April 8, losing about 13 per cent.

While the chart continues to be bearish, copper futures has a notable support at ₹790. This is a strong base. However, this by itself cannot be taken as a sign of a bullish reversal in trend.

For the contract to regain its positive inclination, it should surpass the nearest barrier at ₹825. If that occurs, the outlook can turn positive where copper futures can rally to ₹860.

On the other hand, if the contract breaches the support at ₹790, it can extend the fall to ₹770, a support. A break below this level can turn the medium-term trend bearish. Support below ₹770 is at ₹740.

That said, as it stands, copper futures is trading between the key price points at ₹770 and ₹790. This also leaves the probability of a consolidation, at least in the short-term, high.

Trade strategy

Given that there is no clarity with respect to the upcoming trend and that there is a chance for a sideways movement, we suggest traders staying out.

Published on April 9, 2025