Copper prices on the Multi Commodity Exchange fell over the last two weeks. The contract touched a high of ₹1,433 per kg and currently trades at ₹1,395 per kg. Experts suggest traders stay out of the market as they wait for clarity on the next move near the ₹1,376 support level.
Copper prices have been coming down over the last two weeks. The Copper futures contract traded on the Multi Commodity Exchange (MCX) touched a high of ₹1,433 per kg and has come down from there. It is currently trading at ₹1,395 per kg.
Outlook
Immediate resistance is at ₹1,409. Support is at ₹1,376 which can be tested in the next few days. The price action thereafter will need a close watch. If the contract manages to bounce back from this support, a relief rise to ₹1,400-₹1,410 is possible. A decisive break above ₹1,410 is then needed to ease the downside pressure. Such a break can then take the MCX Copper Futures contract up to ₹1,440 again.
On the other hand, if the contract breaks below ₹1,376, the selling pressure can intensify. In that case, a fall to ₹1,355-₹1,350 and even lower levels can be seen.
Trade Strategy
The risk/reward ratio does not favour any trade at the moment. We need to get clarity on the next direction of move. So, the price action around ₹1,376 will need a close watch. We suggest traders to stay out of the market.