The up-move in the price of copper is gaining momentum. The copper futures contract traded on the Multi Commodity Exchange surged over 2 per cent on Tuesday and is currently trading at ₹400 per kg.
The copper price was under pressure and was on a strong downtrend between February and May. The price had reversed higher in May thereby reversing the downtrendin place since February.
The COMEX-Copper futures contract made a high of $2.82 per pound in February and fell sharply to a low of $2.47 per pound in May. The contract has reversed higher from this low and is trading near $2.80. The MCX-Copper contract, which moves in tandem with COMEX-Copper, fell from a high of ₹415 in February to a low of ₹353 in May.
The short-term outlook is bullish. Key supports for the COMEX-Copper contract are at $2.75 and $2.71. If it manages to close decisively above $2.80 per pound it can gain momentum. In such a scenario, there is a possibility of the contract rallying to $2.95 or $2.98 in the coming weeks.
But if the contract fails to extend its upmove strongly above $2.80, a near-term pullback to $2.75 or $2.71 is possible. A further fall below $2.71 is less probable.
On the domestic front, the contract has key supports at ₹390 and ₹385, which are likely to limit the downside in the short term.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.