Copper prices have recovered well in the last two weeks. The Copper Futures contract on the Multi Commodity Exchange (MCX) tumbled to a low of ₹789.65 per kg earlier this month and has risen back well from there. It is currently trading at ₹852 per kg.
Outlook
The short-term outlook is positive. The MCX Copper Futures contract is getting strong support from the 200-Day Moving Average (DMA), currently at ₹831. The contract can rise to ₹865-870 this week. The price action thereafter will need a close watch.
Failure to breach ₹870 can trigger a corrective fall to ₹850 again. But a strong break above ₹870 will boost the bullish momentum. Such a break can take the MCX Copper contract up to ₹880 and even ₹900 in the coming weeks.
The contract has to fall below the 200-DMA support to turn the outlook negative. Such a break can drag the MCX Copper contract lower to ₹810.
But the price action on the charts indicate that the chances are less for the contract to decline below the 200-DMA support.
Trade Strategy
Traders can go long now at ₹852. Accumulate on dips at ₹848. Keep the stop-loss at ₹841 initially. Trail the stop-loss up to ₹855 as soon as the contract goes up to ₹859. Move the stop-loss further up to ₹861 when the price touches ₹865. Exit the long positions at ₹870.
Published on April 21, 2025
About The Author
