Copper futures has been range bound over the past few weeks. Currently trading at ₹882/kg, the contract has largely been moving in the range of ₹878-900. The broader range is ₹870-905.
The movement within the aforementioned broader price band shows that copper futures has formed a lower high. Also, the chart shows that the bulls have lost momentum.
Nevertheless, so long as the support at ₹870 holds, we cannot call the trend bearish. So, overall, the contest between the bulls and the bears has become tighter now. Therefore, we can be certain about the path of the next leg of trend only after ₹870 or ₹905 is invalidated.
A breakout of ₹905 can trigger a rally to ₹920. Resistance above ₹920 is at ₹930. On the other hand, if copper futures slips below the support at ₹870, the near-term outlook can turn bearish, potentially dragging the contract to ₹850. Support below ₹850 is at ₹835.
Trade strategy
Fresh trades are not recommended until either ₹870 or ₹905 is breached.
But traders with higher risk appetite can go long on copper futures if the price dips to ₹875. Target and stop-loss can be ₹900 and ₹865 respectively.
Published on August 6, 2025