Copper futures began to rally in early January on the again of the assist at ₹800. However over the previous couple of weeks, it has been dealing with a barrier at ₹840.
Whereas there has not been a bearish pattern reversal, the contract moderated barely and the February contract is at the moment hovering round ₹830.
The value motion over the previous couple of weeks reveals that the contract has largely been buying and selling flat. It has been oscillating between ₹824 and ₹840.
Due to this fact, the following short-term pattern may be projected provided that copper futures value strikes out of the above-mentioned value band.
If there’s a breakout of ₹840, copper futures can rally to ₹860, a resistance. A breach of ₹860 can flip medium-term pattern bullish.
However, if the contract slips under ₹824, it might probably prolong the drop to ₹800-790 assist band. A break under ₹790 can take copper futures all the way down to ₹770.
Commerce technique
Given the prevailing situations, the risk-reward is unfavourable for each lengthy and quick positions. Merchants can wait and provoke commerce alongside the route of the break of ₹824-840 value band.
