Final week, in our MCX copper futures worth projection, we had forecasted the contract would reverse decrease put up the corrective rally. That’s, we anticipated it to renew decline within the worth band of ₹785-790. However opposite to that, it prolonged the rally to hit a six-week excessive of ₹814.6 on Could 3.
Nevertheless, the contract couldn’t maintain above the ₹800-mark the place it dropped and is presently buying and selling round ₹785. So, the rally overshot however the pattern didn’t flip bullish. Going forward, we count on the contract to say no from the present degree.
Whereas ₹770 could be a minor assist, the contract will most definitely slip under this worth level and drop to ₹760. A breach of this degree may end up in the contract declining to ₹738 — its earlier low.
Given the above circumstances, one can take into account initiating contemporary brief positions on the present degree of ₹785. Add extra shorts if there’s a rally to ₹800. Maintain preliminary stop-loss at ₹815. When the contract drops under ₹770, revise the stop-loss all the way down to ₹785. Likewise, when it falls under ₹760, tighten the stop-loss additional to ₹775. Exit all of the shorts when the contract touches ₹738 as a result of there could be a bounce off this degree since this can be a sturdy assist.
June 09, 2022