Copper prices experienced a significant increase last week, with the Copper Futures contract on the Multi-Commodity Exchange (MCX) rising by 3.6 percent. The contract saw an intraweek surge of over 6 percent, reaching a peak of ₹963.45 per kg, and is currently trading at ₹946 per kg.
This sharp price increase was primarily driven by concerns over potential supply disruptions after a fatal incident reported by Freeport-McMoRan, a major copper producer. The market reacted swiftly to the news, reflecting heightened anxiety over the availability of copper supplies.
Outlook
The recent spike in prices has pushed the MCX Copper Futures contract above a crucial resistance level of ₹930, which is now expected to serve as a support level. Analysts suggest that the contract could rise to test a significant resistance point at ₹985. If the contract fails to break through this level, prices may retrace back to ₹930. Close monitoring of price movements will be essential in this scenario.
Should the contract manage to exceed the ₹985 threshold, it may stimulate bullish momentum, paving the way for a potential rally toward ₹1,120-₹1,140. However, analysts note that a strong positive catalyst will be necessary to overcome the resistance at ₹985.
Trade Strategy
In light of the current market conditions, traders are advised to consider going long now at ₹946. Accumulating positions on dips at ₹935 is recommended, with a stop-loss set at ₹918. As the contract rises to ₹963, the stop-loss should be trailed up to ₹955. Further adjustments to the stop-loss can be made to ₹965 and ₹973 once the price reaches ₹970 and ₹978, respectively. Traders are advised to exit their long positions at ₹983.
Published on September 29, 2025.
