Copper Futures Market Trapped in Sideways Trend
The copper futures market has been experiencing a sideways trend for nearly a month. Prior to this consolidation phase, it had rallied, indicating that the bullish bias still prevails.
However, the longer the market stays flat, the more traction bears will gain. Currently, the September futures is oscillating between ₹1,360 and ₹1,410 since early August. The direction of the breach of this price band will determine the next trend.
If the contract breaks out above ₹1,410, it could extend the rally to ₹1,440, with resistance at ₹1,450. However, if bears manage to drag copper futures below the support at ₹1,360, the near-term outlook will turn weak, possibly leading to a price decline to ₹1,330.
As of now, the support at ₹1,360 holds, giving bulls an advantage. Traders can consider buying copper futures (Sep) at ₹1,365 with a stop-loss at ₹1,355 and book profits at ₹1,400.