Copper futures (July contract) hit a high of ₹957 on the Multi Commodity Exchange (MCX) in May, before turning downward. It has been falling since then, closing at ₹845.75 on Monday.
The long-term chart suggests that the price band of ₹835-845 is a potential demand zone. Considering this, along with the broader trend, which is bullish, there is a good chance copper futures will rebound from here.
If such a move occurs, the contract could touch ₹915 in the short-term. A breach of this level can take the contract up to ₹950. On the other hand, if the downswing continues, the contract could approach ₹800, a strong support. Notable support below ₹800 is at ₹760.
Trade strategy
Copper futures is trading near a support, so traders can consider buying at ₹840. Place stop-loss at ₹828. When the contract rises past ₹875, alter the stop-loss to ₹855. On a rally to ₹900, tighten the stop-loss to ₹885. Book profits at ₹915.
Read More: Copper futures: Trading in a demand zone, consider buying