Copper prices are stuck in a sideways range for almost three months now. The Copper Futures contract traded on the Multi Commodity Exchange (MCX) has been oscillating between ₹860 and ₹906 per kg since the second week of June this year. Indeed, the range has narrowed down to ₹868 and ₹895 since the beginning of this month. Within this range, the contract is currently trading at ₹885 per kg.
Outlook
The near-term outlook is unclear. We will have to wait for a breakout on either side of ₹860 or ₹906 to get clarity on the next direction of move.
A break below ₹860 will be bearish. It can take the MCX Copper Future contract down to ₹848. A further break below ₹848 will increase the selling pressure. Such a break can see the contract extending the fall to ₹835-833 in the coming weeks.
On the other hand, if the contract manages to breach ₹906, it can rise to ₹912 initially. A decisive break above ₹912 can take clear the way for a further rise to ₹928. From a big picture, MCX Copper has to ideally rise past ₹928 to turn the outlook completely bullish.
Trade Strategy
For now, stay out of the market. However, traders can go short if the contract declines below ₹860. Keep the stop-loss at ₹864. Trail the stop-loss down to ₹858 when the price goes down to ₹856. Move the stop-loss further down to ₹856 when the contract touches ₹854 on the downside. Exit the shorts at ₹852.
Published on August 28, 2025
