Copper Futures Teeter on Support as Rally Looms

Copper futures have been experiencing a sideways trend over the past two weeks, oscillating between ₹1,365 and ₹1,400. The August futures contract has been hovering around this range since August 5.

Despite a recent drop in price, analysts believe that the contract is near a support level at ₹1,365 where the 21-day moving average coincides.

This could lead to copper futures resuming their rally, potentially rising past ₹1,400 and extending the rally to ₹1,430. However, if this support level is breached, the outlook can turn bearish, with prices declining to ₹1,350 or even ₹1,325.

Trade strategy suggests shorting copper futures at ₹1,385 for a target of ₹1,350, but now traders can initiate fresh longs at ₹1,370 with a stop-loss at ₹1,325 and exit at ₹1,430.