Copper futures: Stay away for now

Copper futures: Stay away for now

by admin- Tuesday, July 19th, 2022 07:08:27 AM

To resume downtrend at ₹670 or ₹seven-hundred stage
After posting loss for six weeks in a row, the non-stop futures of copper on the MCX (Multi Commodity Exchange) has visible a minor rally. While the agreement closed at ₹616.Four last week, it inched as much as ₹630 in early alternate.

On the upside, the nearest resistance can be noticed at ₹670 where the 23.6 in step with cent Fibonacci retracement of the latest fall coincides. Should there be a breach of this level, subsequent resistance lies in the charge band of ₹seven hundred-710.

Given that the overall fashion remains bearish, a rally beyond ₹seven hundred-710 variety is less likely.

We assume the contract to move up from the modern-day stage and resume the downtrend both at ₹670 or ₹seven-hundred-710 area. We suggest traders to live away now and initiate clean positions once the contract appreciates to ₹670 and ₹seven-hundred.

Strategy: Initiate shorts well worth half of the supposed amount when the contract moves to ₹670. Add shorts for the closing quantity at ₹700 after which area prevent-loss at ₹745. When the agreement slips under ₹600, revise the prevent-loss down to ₹670. Liquidate all the shorts when the contract touches ₹550. This is a big assist level and there is a good risk that the settlement rebounds from this level.

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