Copper futures: Hovers nears a support
Traders can exit the shorts and initiate long positions
Copper futures prices have been hovering near a crucial support level of ₹1,365 per kilogram over the past two weeks, according to market data. Despite the sideways trend, the overall uptrend remains intact, indicating a potential return to a rally. The August futures have been fluctuating between ₹1,365 and ₹1,400 since August 5, with the current price nearing the bottom of this range.
The 21-day moving average aligns with this support level, suggesting that a bounce back is possible, potentially pushing copper futures above ₹1,400 and extending the rally to ₹1,430. However, if the support at ₹1,365 is breached, the near-term outlook could turn bearish, leading to a decline to ₹1,350 and subsequently to ₹1,325.
Despite the possibility of a short-term downturn, the overall sentiment remains bullish, with a high likelihood of a rally. Traders may consider exiting short positions at ₹1,370, the current support level, and initiating new long positions at ₹1,370 with a stop-loss at ₹1,325. The next exit point could be at ₹1,430.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
