Copper trying out key support band

Copper trying out key support band

by admin- Wednesday, July 6th, 2022 07:09:30 AM

MCX futures may see a bounce
Over the beyond month, the relentless selling in copper futures (non-stop contract) at the MCX (Multi Commodity Exchange) ended in its hitting a 52-week low, marking a low of ₹672.15 before wrapping up the week at ₹679.

Nevertheless, the price range of ₹660-675 is a sizeable base. The 38.2 in line with cent Fibonacci retracement stage of the rally among March 2020 and March 2022 coincides at ₹675, making the help more potent. Also, the relative strength index (RSI) on the daily chart is now at oversold tiers. Hence, there may be a bounce on the aid band of ₹660-675.
There isn’t any denying that the general bias remains bearish. Yet, given the contract has fallen sharply and hovers around the aid location, the case for a corrective rally seems reasonable.

Traders maintaining brief positions can liquidate on the modern-day ranges. Going forward, the subsequent are the alternatives that we suggest. One, brief copper futures if it breaches the assist at ₹660; location stop-loss at ₹seven hundred. When the agreement falls beneath ₹620, tighten the forestall-loss to ₹640. Exit the shorts at ₹590.

Two, wait for the contract to rally to ₹720 and then go short. Keep prevent-loss at ₹750. Alter the forestall-loss to ₹seven-hundred when the agreement slips beneath ₹660 and tighten it further to ₹640 whilst copper futures flow underneath ₹620. Liquidate at ₹590.

However, a rally above ₹720 can build high-quality momentum and consequently, respect to ₹760 and probably to ₹780, which might be the tremendous limitations.

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