The pace of rise in Copper price seems to have slowed down in the past week. The Copper Futures contract on the Multi Commodity Exchange (MCX) rose to a high of ₹915.50 per kg and has come down from there. It is currently trading at ₹902 per kg.
Outlook
The trend is still up. Strong support is in the ₹890-885 region. An intermediate dip to test this support zone this week is a possibility. The presence of the 21-Day Moving Average (DMA) at ₹885 makes the ₹890-885 region a very strong support and will be difficult to break. So, we expect the contract to reverse higher from this ₹890-885 support zone. Such a bounce will take the MCX Copper Futures contract up to ₹930-940 in the coming weeks. It will also keep the medium-term bullish view intact to see ₹970 levels on the upside.
This bullish view will go wrong if the Copper contract declines below ₹885. If that happens, the contract can see a fall to ₹870 and even lower. But such a fall looks less likely as we expect fresh buyers coming into the market around ₹885.
Trade Strategy
Traders can go long on dips at ₹895 and ₹890. Keep the stop-loss at ₹873. Trail the stop-loss up to ₹905 as soon as the contract goes up to ₹915. Move the stop-loss further up to ₹920 when the price touches ₹925. Exit the long positions at ₹935.
