Copper futures saw a rally in early January with support at ₹800, but faced resistance at ₹840 in recent weeks. The February contract is now hovering around ₹830, showing a slightly moderated trend. The price range has been between ₹824 and ₹840, indicating a flat trading pattern. The next short-term trend can be determined only if the price moves out of this range.
A breakout above ₹840 could lead to a rally towards the ₹860 resistance level, with a potential to turn the medium-term trend bullish. Conversely, a drop below ₹824 could see prices decline towards the support band at ₹800-790, with a further downside potential to ₹770.
Given the current conditions, the risk-reward ratio is unfavourable for both long and short positions. Traders may want to wait for a breakout above or below the price band of ₹824-840 before initiating any trades. The article was published on January 31, 2025.
