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Copper Futures: Go short with stop loss at ₹760

Copper Futures: Go short with stop loss at ₹760

As the calendar turned to June, copper prices saw a sharp decline. Consequently, Copper futures on MCX (Multi Commodity Exchange) started a new phase of downtrend around ₹810 resistance level. It fell over the past few weeks and broke key supports at ₹745 and ₹732.

On Thursday, the contract started the session below support at ₹732, opening the door for further weakness. At ₹725, the nearest support can be seen at ₹710. Below this is the support of ₹ 690. We expect copper futures to reach ₹690 in a few months.

The contract may see a corrective rally from the current levels, falling towards ₹745 to ₹710 and then ₹690.

Traders can consider opening fresh shorts at the current level of ₹725, and adding more shorts when it rises to ₹745. Place the starting stop-loss at ₹760. When the price drops to ₹710, liquidate three-fourths of the total shorts you are holding and tighten the stop-loss to ₹732. Liquidate the remaining shorts at ₹690.

Note that there is a high chance of the contract rebounding from the ₹685-690 support band. Hence, it is prudent to exit shorts at ₹690.

Published on

23 June 2022

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Copper Futures: Go short with stop loss at ₹760

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