prices are managing to stay afloat. The Copper Futures Contract traded on the Multi Commodity Exchange (MCX) has bounced back in the past week from its low around ₹993 per kg. However, this bounce back move seems to lack strength. The contract is currently trading at ₹1,008 per kg.
Outlook
The near-term outlook for the MCX Copper Futures contract is unclear. The recent price action is not indicating whether this is just a consolidation within the broad uptrend or a top formation.
Immediate support is at ₹1,000. Below that, ₹985 is the next strong support. Resistance is around ₹1,030. A breakout on either side of ₹985-₹1,030 will give clarity on the next direction of move.
A decisive break below ₹985 will be bearish. It will indicate a top in place and a bearish trend reversal. That will then drag the MCX Copper Futures contract down to ₹960.
On the other hand, if the contract manages to sustain above ₹985, a sideways consolidation between ₹985 and ₹1,030 is a possibility for some time. An eventual break above ₹1,030 will keep the broader uptrend intact. Such a break will clear the way for a rally to ₹1,070 and higher.
Trade Strategy
Since the direction of move is unclear, it is better to stay out of the market. Wait for a breakout on either side of ₹985 or ₹1,030 and take trades accordingly.