Copper futures, currently trading at ₹1,370 per kilogram, have recorded a sideways trend over the last two weeks. Despite recent price drops in the last two sessions, market indicators suggest that the broader uptrend remains intact.
Since August 5, the August futures contract has been oscillating within a defined range between ₹1,365 and ₹1,400. The contract is presently positioned near the bottom of this range. Market analysis indicates that the contract could resume its rally due to the presence of support at ₹1,365, a level that coincides with the 21-day moving average. If this support holds, the contract could rise past ₹1,400 and extend toward a target of ₹1,430.
Conversely, a breach of the ₹1,365 support level would alter the near-term outlook to bearish. In such a scenario, prices could potentially decline to ₹1,350 and subsequently drop further to ₹1,325. Nonetheless, current observations suggest that the broader market inclination remains bullish, indicating a high likelihood of a recovery rally.
Trading strategy recommendations suggest that participants who previously entered short positions at ₹1,385 for a target of ₹1,350 should exit the trade at the current level of ₹1,370. Following this exit, traders may consider initiating fresh long positions at ₹1,370, setting a stop-loss at ₹1,325 and a target exit at ₹1,430.
"Commodity markets like copper require strict adherence to technical levels, especially when prices consolidate near key moving averages. Traders should closely monitor the ₹1,365 support zone as it acts as a crucial indicator for short-term direction. Managing risk through defined stop-losses and clear exit targets remains essential in navigating sideways market trends." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
