Comments
The MCX- copper futures contract has been in a prolonged sideways range movement between ₹300 and ₹340 per kg. Within this range, the contract has reversed sharply after touching a low of around ₹310 last month. It is now heading to test the range resistance at ₹340. Whether the contract breaks above ₹340 or not will decide the next move. Traders can remain on the sidelines. Avoid trading this contract until the range breakout gives a clear cue on the next direction of move. A strong break above ₹340 will boost the bullish momentum. Since the contract has been stuck inside this range for many months, such a break can trigger a sharp and a swift rally. It may pave the way for a fresh rally to ₹380 or ₹400 thereafter. But if the contract fails to break above ₹340 this week and reverses lower, the ₹300-340 range will remain intact. In such a scenario, the contract can fall to test the intermediate support zone between ₹321 and ₹318. A strong fall below ₹318 will then drag the contract lower to ₹310 or ₹305 thereafter.
Comments
COMMENT NOW
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.