Copper prices have remained stable in the past one week and have been moving within a range. The Multi Commodity Exchange (MCX) copper futures contract has been fluctuating between Rs 778 and Rs 797 per kg in the past one week. It is currently trading at Rs 796 per kg, hovering near the upper end of the range.
Outlook
The immediate outlook is unclear, with a breakout on either side of ₹778 or ₹797 determining the next move.
The contract is currently trading near the upper end of the range and hence a breakout from the range is key. A sustained break above Rs 797 will signal a bullish move for the contract to rise to Rs 810.
However, if the price fails to break above Rs 797, the contract may be lowered downwards. In that case, the range of Rs 778 to Rs 797 will remain intact. As a result, the contract may be lowered to Rs 778, which is the lower limit of the range going forward.
The outlook will be bearish if the contract falls below Rs 778. Such a fall could take the contract down to Rs 765.
Trade Strategy
Check if the contract rises above ₹797. Go long after the breakout at ₹799. Keep the stop loss at ₹796. As soon as the contract rises to ₹804, raise the stop loss to ₹801. If the price touches ₹806, raise the stop loss further to ₹803. Exit the long position at ₹807.
