The recent surge in copper prices, which began at the start of the year, appears to be tapering off. Copper Futures Contract on the Multi Commodity Exchange (MCX) reached a high of ₹840.95 per kg last week before experiencing a decline. It is currently priced at ₹828 per kg.
### Outlook
The drop below ₹830 signals a negative trend, suggesting that the MCX Copper may have reached an interim peak. A bearish outlook is expected as long as the contract remains below ₹830. A correction down to ₹817 or ₹815 could occur soon, with clusters of moving averages located in this range. While a drop below ₹815 is unlikely, it should be monitored closely.
If the Copper Futures contract rebounds from the aforementioned support zone, the sentiment could turn positive, preserving the short-term uptrend since the beginning of the year. This could propel the MCX Copper Futures contract to ₹845-₹850 in the upcoming weeks. Alternatively, a breach below ₹815 could lead to a further decline to ₹810, warranting close attention to price action in the ₹817-₹815 range.
### Trade Strategy
Traders are advised to wait for dips and consider going long only if the MCX Copper Futures contract rebounds from the ₹817-₹815 region. Setting a stop-loss at ₹808, trailing it to ₹822 once the price reaches ₹826, and moving it to ₹832 upon hitting ₹836 is recommended. Long positions should be exited at ₹840.
Published on January 23, 2025.
