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The MCX-Copper contract continues its consolidation phase. Since November 2016, the contract has been range-bound between ₹365 and ₹415 per kg. It is currently testing the lower boundary of this range. A breakout on either side will decide the next move. The contract has a significant long-term support at ₹365. If it manages to reverse higher from ₹365, the sideways range will remain intact. It can move higher to ₹400 and ₹415 levels once again, on a decisive breach of ₹385 levels. However, if it conclusively breaks below ₹365, then it can slip to ₹350 or ₹345 in the short term. The level of ₹345 is a key long-term support and further fall below it is less likely. A subsequent reversal from the ₹350-345 support zone can take it higher to ₹365 and ₹370. The contract will gain fresh bullish momentum only if it breaks above ₹415. Then it can trend higher to ₹428. A further break above ₹428 will pave the way for an upmove to ₹450 and ₹460. Such a rally will strengthen the uptrend and take it higher to ₹500 levels from a medium- to long-term perspective.
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