For slightly over two weeks, the copper futures on the MCX (Multi Commodity Change) has been on a corrective rally. The contract went up from about ₹600 to the present stage of ₹645. Previous to that, it noticed a leg of sharp downtrend the place the worth dropped from about ₹800 to ₹600, dropping about 25 per cent.
Whereas the general pattern stays bearish, there are probabilities for copper futures to inch as much as ₹670 and even ₹700 earlier than resuming the subsequent leg of downtrend.
A rally past ₹700 isn’t seemingly as it’s a sturdy resistance, because the broader pattern stays bearish. As soon as the contract resumes downtrend, it might probably slip beneath ₹600 and decline to the assist band of ₹530-550. This can be a good base from which the contract can see a bounce.
Merchants can contemplate executing recent quick positions when the contract strikes as much as ₹670. Add extra shorts if it rallies additional to ₹700 and place an preliminary stop-loss at ₹745. When the contract reverses to the draw back and dips beneath ₹600, revise the stop-loss right down to ₹670. Liquidate all of the shorts when the contract touches ₹550. It might rebound anyplace inside the worth area of ₹530-550.
August 02, 2022