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The MCX-Copper contract has been oscillating around ₹400 for more than a month now. The price action on the chart since November 2016 indicates an ascending triangle pattern. This is a bullish continuation pattern. This suggests that the uptrend is intact and is likely to continue in the coming weeks. In addition to this, the 21-week moving average is on the verge of crossing over the 200-week moving average; the 55-week moving average is poised to cross the 100-week moving average. These indicators leave a positive bias. Strong support is in the ₹390-₹380 zone, which is likely to limit the downside in the contract. Key resistance is in the ₹410-₹415 region. A strong break and a decisive weekly close above ₹415 will signal the breakout of the triangle pattern. Such a break can take the copper contract higher to ₹428 initially. Further break above ₹428 will increase the likelihood of the rally extending to ₹450 and ₹460 levels. Medium-term traders can go long at current levels. Accumulate on dips near ₹390. Keep the stop-loss at ₹365 for the target of ₹445.
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