Copper futures shows bearish inclination

Copper futures remained largely flat last week. On Monday, it closed at ₹855.35/kg. Therefore, the contract is still stuck between ₹835 and ₹862.

That said, the weekly chart shows that copper futures has been facing a bit of a selling pressure between ₹855 and ₹862. So, a prolonged consolidation near these levels might lead to the bears gaining more strength.

If there is a decline from the current level, copper futures can find support at ₹835 and ₹820. A trendline coincides at the latter, making it a strong base. If this level is breached, the contract can fall to ₹790 and ₹770, potential support levels.

However, if copper futures rallies from the current level and surpasses ₹862, there is another resistance at ₹872. Only a decisive breakout of ₹872 can turn the trend bullish. In such a scenario, copper futures can rise to ₹910 and ₹930, potential resistance points.

But as mentioned above, the recent candlesticks on the weekly chart gives a minor bearish inclination to copper futures.

Trading strategy

Traders with higher risk appetite can short copper futures at ₹852 with a stop-loss at ₹865. When the contract dips to ₹835, revise the stop-loss to ₹845. Book profits at ₹825.

Published on May 20, 2025