Copper futures has been on an upward trajectory since early January, after it found support between ₹790 and ₹800. The chart shows that further gains are likely in the near-term.
The February futures surpassed a key resistance at ₹845 last week. This has added strength to the existing bull trend. Therefore, there is a good chance that the contract is likely to move up further and touch ₹900 in the near-term.
On the other hand, if copper futures see a decline in price below ₹845, the short-term outlook can turn weak, where it can extend the decline to ₹820, a support. Subsequent support is at ₹800.
Nevertheless, broadly, the uptrend is intact and even though there is a price correction, it is highly likely to attract buyers, eventually triggering another leg of rally.
Trade strategy
Last week, we suggested buying copper futures at ₹853. Retain this trade with the stop-loss at ₹825. When the contract rises to ₹875, alter the stop-loss to ₹865. Tighten the stop-loss further to ₹880 when the contract touches ₹890. Book profits at ₹900.